BURLINGTON, ON, Feb. 28,
2023 /CNW/ - EcoSynthetix Inc. (TSX: ECO)
("EcoSynthetix" or the "Company"), a renewable chemicals company
that produces a portfolio of commercially proven bio-based
products, today announced plans to modify its manufacturing
footprint with improvements to both its North American and European
asset bases.
EcoSynthetix will internalize its North American manufacturing
capacity at its Centre of Innovation and corporate headquarters in
Burlington, Ontario in 2023 and
install its first, in-house manufacturing asset with an annualized
name-plate capacity of up to 30 million pounds. This investment
will improve the Company's ability to launch new products and
reduce manufacturing costs.
In Europe, EcoSynthetix is also
investing to upgrade its manufacturing infrastructure to enable
flexibility in supply chain options and reduce manufacturing costs,
at its toll manufacturing partner's facility in Oosterhout,
The Netherlands. This
facility has a dedicated production line owned by EcoSynthetix with
name-plate capacity of up to 80 million pounds. The Company also
has access to an additional variable production line at this
facility with name-plate capacity of up to 40 million pounds which
is currently used for production of specialty grades.
"With the expansion of our product offering into new verticals
and the growing importance of supply chain management, these
capital investments provide us greater flexibility and an improved
cost position to meet customer demand," said Jeff MacDonald,
CEO of EcoSynthetix. "Internalizing North American production
will provide us with more control of the manufacturing process as
we launch new products, win new accounts and grow our Durabind™,
Bioform™, EcoSphere®, and SurfLock™ offerings for the wood
composites, personal care, paperboard and tissue verticals. These
investments demonstrate the capital efficient nature of our
continuous extrusion process and our ability to scale strategically
with demand."
The Company's North American production is currently
manufactured through a toll production partner located in
Dyersburg, Tennessee. This
production line is owned by EcoSynthetix and operated under the
contract by the Company's toll production partner with a name-plate
capacity of up to 80 million pounds and will be removed from the
facility after production ceases, which is expected to occur by the
end of 2023.
EcoSynthetix expects to invest approximately $2.9 million in 2023 for these investments and
will incur approximately $1.0 million
non-cash accelerated depreciation charges.
About EcoSynthetix Inc. (www.ecosynthetix.com)
EcoSynthetix offers a range of sustainable engineered
biopolymers that allow customers to reduce their use of harmful
materials, such as formaldehyde and styrene-based chemicals. The
Company's flagship products, DuraBind™, Bioform™, SurfLock™ and
EcoSphere®, are used to manufacture wood composites, personal care
products, tissue, paper and paperboard, and enable performance
improvements, economic benefits and carbon footprint reduction. The
Company is publicly traded on the Toronto Stock Exchange
(T:ECO).
SOURCE EcoSynthetix Inc.