DSM acquires Brazilian state-of-the-art fermentation facility from Amyris

005ebcff-564e-441c-9869-ed25f6fb9f99articleimage.jpg

20 Nov 2017 --- Royal DSM a global science-based company active in health, nutrition and materials and Amyris, Inc, the industrial bioscience company, have enhanced their strategic alliance through the sale of Amyris Brasil Ltda to DSM and the establishment of a long-term manufacturing partnership for Amyris' high-volume products.  

The consideration for Amyris Brasil Ltda, which owns and operates the Brotas 1 production facility, and intellectual property related to farnesene, a bio-based key intermediate for many applications, is US$58 million. 

On top of this, there is an additional value share arrangement over a three-year period amounting to US$37.5 million. In addition to the consideration upfront, there is potential for a future value share in line with Amyris' business model.

DSM will continue existing supply-agreements to Amyris and other parties and will also supply Amyris with specialty compounds until it realizes its Brotas 2 specialties production facility. 

Speedy construction 
Amyris says it is accelerating the construction of its second facility which will be dedicated to specialty products while maintaining the manufacturing process development and business support capability located in Campinas, Brazil.

The transaction is subject to the usual conditions and is expected to close in the next few months.

With the acquisition of the Brotas 1 facility, DSM adds a state-of-the-art biotechnology-based production site in Brazil to its global network, with abundant availability of sustainable raw materials, namely sugar cane, securing production capacity for its rich pipeline of sustainable and bio-based solutions. 

Having broad experience in operating large-scale fermentation plants, DSM will optimize the operational performance of the site.

The strategic alliance between DSM and Amyris started in May 2017 with an equity investment by DSM in Amyris and has since been expanded with several significant product development collaborations.  

The sale of the Brotas 1 facility, which was designed to produce high volumes of farnesene, together with the creation of a long-term production relationship for high-volume farnesene-based intermediates, will enable Amyris to focus on its core strength of developing breakthrough bioscience technologies, says DSM. 

The company will continue to target key markets and concentrate on the production of specialty products.

“Following our equity investment in Amyris and subsequent product development cooperation, I am pleased that we can add a state-of-the-art fermentation-based production facility to our network,” said Chris Goppelsroeder, President & CEO of DSM Nutritional Products.

“Our know-how in fermentation, downstream process development and large-scale manufacturing will allow us to further improve the operational performance of the facility while further strengthening our strategic alliance with Amyris.”

Amyris President & CEO, John Melo, adds how pleased the company is with the continued strategic alliance with DSM. 

“This manufacturing partnership and the sale of our Brotas 1 factory allows us to accelerate the development and manufacturing of specialty, high-performance ingredients,” he said.

“We are building a specialty plant at Brotas (Brotas 2) and also expect to complete our São Martinho plant to focus on sweeteners. The combination of these actions provides us the manufacturing footprint to meet our current demand through the next three to five years and to manage this within our funding constraints.”

“This transaction completes a planned shift from operating a plant originally designed to produce high volumes of farnesene, to producing an expanding number of high-value, specialty ingredients. This shift will allow Amyris to improve returns and cash flows in order to continue to provide sustainable growth for Amyris and its partners.”

DSM Food Specialties

Collapse

Our aim is to help customers succeed in their markets through strong innovation, exceptional application expertise and insight into the many, ever-changing needs of consumers worldwide.

For food, beverage and supplement manufacturers we offer the comprehensive resources needed to provide customized solutions. Scientific excellence aside, that means a deep knowledge and understanding of markets, consumers and the defining trends in our industry. Namely:

A sharp focus on health benefits: Consumers across the world want to look and feel better. The empowerment and awareness of consumers from India to Indiana is a defining trend in food and beverage nutrition, which we meet through our family of nutritional ingredients and products.

Taste is a key qualifier: If a product doesn’t taste good it doesn’t stand much chance of success. As the world’s tastes and preferences evolve and expand, we are increasingly helping customers innovate, with exciting, authentic and regional flavors and ingredients provided in a streamlined and efficient way.

The drive for convenience: Despite the trend for health foods, time-pressed consumers are looking to buy more processed and convenience food than ever. DSM is committed to helping customers address the need for fast, high-quality products.

Food safety and quality: Our ingredients are based on solid scientific evidence and application knowledge based on decades of experience in our markets. We’re well aware that food safety and compliance is paramount for growing and ambitious food brands.

Related Articles

Regulatory News

EU Parliament rejects calls for phosphate ban

14 Dec 2017 --- A proposal to ban the additive phosphate, a key component in kebabs and gyros, has been narrowly defeated in European Parliament following a vote yesterday (December 13).The legislature fell three votes short of reaching an absolute majority of at least 376 votes for a phosphate ban, which would have seriously impacted the kebab industry, forcing it to find alternatives rather than stop producing the highly popular fast food.

Food Research

Vegans call for more grab-and-go food options, according to survey

14 Dec 2017 --- Vegans want to see more grab-and-go options in retailers and foodservice outlets, according to a new survey by The Vegan Society. The results showed that vegans (91 percent) often struggle to conveniently pick up these types of food options which has led to the launch of the Society’s new campaign, Vegan on the Go. 

Business News

Aviko plans to join online grocery marketplace, INS ecosystem

13 Dec 2017 --- Subsidiary of Royal Cosun, potato processor Aviko has signaled its intention to join the direct-to-consumer movement by signing up to the INS platform, the online marketplace where producers can offer their products directly to consumers.

Food Ingredients News

Innovation success for alternative proteins at FiE

13 Dec 2017 --- Alternative proteins had a strong presence at FiE in Frankfurt last month. Exhibitors showed a sustained focus on alternative protein concepts, with a number of innovations and concepts creating a real buzz at this year’s show. FoodIngredientsFirst looks at a few of the offerings being exhibited at this year’s event.

Regulatory News

US: New study puts forward case for hiking up alcohol taxes

13 Dec 2017 --- US state alcohol excise taxes are typically only a few cents per drink and have not kept pace with inflation, according to a new study. Soon to be published in the January issue of the Journal of Studies on Alcohol and Drugs, authors claim that hiking up taxes would be a chance for US states to increase revenues while simultaneously improving public health costs related to excessive alcohol consumption.

More Articles