Cargill Acquires Full NatureWorks Ownership from Teijin
The company applies its proprietary technology to process natural plant sugars to make Ingeo biopolymer, which is then used uniquely to make and market finished products under the Ingeo brand name.
01/07/09 Cargill has assumed full ownership of NatureWorks, LLC, as part of Teijin Limited's general portfolio restructuring in response to the global economic downturn. Previously a 50-50 joint venture, NatureWorks is now an independent company wholly owned by Cargill.
NatureWorks, maker of Ingeo biobased plastics and resins derived from annually renewable resources, had operated as a Cargill-Teijin joint venture since October 2007. It was the first biopolymers business with commercial scale for Teijin. Teijin and Cargill officials indicated they are dissolving the joint venture in a friendly manner and intend to maintain close relations.
NatureWorks was the first company to offer a family of commercially available low carbon footprint polymers derived from 100-percent annually renewable resources with cost and performance that compete with oil-based plastics and fibers. The production of these biopolymers uses less fossil fuel and emits fewer green-house gases than conventional polymers. The company applies its proprietary technology to process natural plant sugars to make Ingeo biopolymer, which is then used uniquely to make and market finished products under the Ingeo brand name.
The ownership transfer will not affect day-to-day operations at NatureWorks. CEO Marc Verbruggen indicated the company retains strong prospects for continued growth. NatureWorks operates the only production facility of its kind with the economies of scale needed to compete with traditional oil based plastics.
"We like our position right now," said Verbruggen. "While the economic downturn slowed sales growth, we still show growth, which can't be said of many conventional materials today. Sales have notably rebounded since January - a clear demonstration that the Ingeo product traits and environmental advantages are important to customers, even in times of lower oil prices."
Cargill officials said that establishing the business as an independent, wholly owned Cargill entity provides NatureWorks with the flexibility to pursue a wide range of opportunities.
"The green product space is ripe for investment and expansion as never before," said Cargill Senior Vice President Paul Conway. "As a green pioneer, NatureWorks is well established with a broad product and customer base. While others put up pilot plants, NatureWorks has been commercial for six years, is increasing Ingeo production availability at its first facility and exploring possibilities for a second plant. We've rounded the first turn while others are at the starting gate."
Ingeo fibers and plastics are used by over 100 leading brands & retailers in the United States, Europe, and Asia. Product innovations in broad plastics applications include flexible & rigid fresh food packaging, durable consumer articles, beverage packaging, and in fibers: apparel, home textile, personal care and hygiene applications.
Key milestones during the last two years have included the first national rollout of water bottles made from NatureWorks’ Ingeo natural plastic in the US, and a lifecycle analysis that determined the unequivocal environmental and performance benefits that will result when recycling NatureWorks’ Ingeo-based bottles back into bottles.
In 2008, following a two-million bottle, five-month long pilot project, Primo Water Corporation of Winston Salem, North Carolina, www.primowater.com, introduced its new line of bottled water in Ingeo single-serve bottles. Primo Water is the first product bottled with renewable plastic to be sold nationally. In August 2008, Primo was instrumental in forming the Bioplastics Recycling Consortium, an organization pledged to develop a recovery system and end markets for post-consumer bioplastic materials.
Earlier in 2008, Good Water, www.goodwater.org.nz, completed a successful pilot study of collecting and recycling Ingeo-based bottles and introduced its new bottled water line. Located in New Zealand, Good Water contributed to the establishment of Greenplastics Inc., www.greenplastics.org.nz, a stewardship organization dedicated to developing, promoting, and securing options for post-consumer uses of bioresins.
