Bunge and Solazyme Expand Joint Venture
By Business Wire News
By Business Wire News
SOUTH SAN FRANCISCO, Calif. & WHITE PLAINS, N.Y.
Solazyme (Nasdaq:SZYM) (“Solazyme”), a pioneer in microalgae innovation and Bunge Limited (NYSE:BG) (“Bunge”), a leading global agribusiness and food company, today announced they have agreed to expand their joint venture (“JV”) to include a focus on food. The expansion includes a range of breakthrough oils for food and products for animal nutrition. The expanded joint venture will build on Solazyme’s ground-breaking microalgae innovation platform, and on Bunge’s global leadership in food and ingredients, including vegetable oils. As part of the JV expansion, the partners also entered into an agreement to expand their co-funded research programs to include new unique products in nutrition and specialty fats. Manufacturing will take place in the JV’s world-class fully operational facility in São Paulo state, Brazil, site of the largest aerobic fermentation vessels in the world.
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As part of the agreement, AlgaWise™ Ultra Omega-9 Algae Oil, AlgaWise™ High Stability Algae Oil and AlgaWise™ Algae Butter structuring fats will be marketed by Bunge’s established global food oil sales and applications team, who bring strong expertise and a global footprint. In addition, Bunge will handle oil processing and supply chain aspects of commercialization.
AlgaWise™ food oils to sustainably advance human nutrition
The expanded JV will manufacture and commercialize a range of new to the world, highly differentiated products, each providing breakthrough solutions to meet major needs in the food industry:
- AlgaWise™ Ultra Omega-9 Algae Oil is a clean tasting oil with the highest level of monounsaturated fats (>90%) on the market and the lowest level of saturated fat of any food oil (<4%). This oil is ideal for meeting market demand for healthier alternatives to saturated fat oils, providing shelf-life stability and excellent culinary performance with one of the highest smoke points available.
- AlgaWise™ High Stability Algae Oil delivers step change performance with one of the highest stabilities of any oil on the market, over 87% monounsaturated fatty acids and only 2% polyunsaturates, less than any other food oil. High Stability Algae Oil drives unprecedented oxidative stability with zero trans-fat per serving. With an exceptionally neutral flavor and high stability under varying conditions, this is a high performance oil that works well in industrial frying, spraying/coating, pan spraying and blending. It can enable food manufacturers to remove added preservatives in everyday favorite foods such as dressings and mayonnaise, achieving cleaner labels with fewer ingredients, as well as completely removing partially hydrogenated vegetable oils.
- AlgaWise™ Algae Butter has a composition and functionality mirroring high value structuring fats such as shea stearin, with a high proportion of stearic-oleic-stearic triglycerides (~70%). This unique oil can be used in a wide range of products. It is expected to have significant value in confectionery based on its reliable, scalable and sustainable supply, as well as offering a better performing alternative for bakery, confectionary, spreads and other applications. The product is expected to be available for the U.S. market in 2016.
Soren Schroder, CEO, Bunge Limited, said, “Strengthening our relationship with Solazyme gives us a differentiated product offering in specialty food and feed ingredients. With Solazyme, we believe we are bringing true innovation and enhanced sustainability to the global food industry. These healthier algae products have tremendous potential to make a positive impact in nutrition and functionality for our customers around the globe, and we’re excited about the potential to broadly commercialize them.”
“Bunge is a leading global agribusiness and food company, and has been a strong long-term partner who shares our vision. Not only do they have fantastic capabilities but they also understand the value of both our ingredients and our underlying technology platform. We are very happy to be deepening and expanding the partnership to include Bunge’s global food sales, marketing, and applications strength and presence. This will further enable our algae-based food ingredients to bring great benefits to people and our planet,” commented Jonathan Wolfson, Solazyme’s CEO.
The products in the scope of the JV will be produced at the joint venture’s manufacturing facility in Brazil adjacent to Bunge’s Moema sugarcane mill. The oils produced have one of the lowest carbon and water footprints of any broadly available vegetable oils and achieve substantially higher oil yields per acre than those of most oilseed crops.
History of collaboration
Today’s announcement follows a history of collaboration between the two companies, beginning with Bunge’s 2010 equity investment in Solazyme, followed by the original Joint Venture agreement in April 2012 that established the production facility at Moema as well as multiple jointly funded development programs over that period of time.
About Solazyme, Inc.
Solazyme, Inc. develops and sells innovative, sustainable, high-performance oils and ingredients that are better for people and better for the planet. Starting with microalgae, one of the world’s original sources of oil, Solazyme creates renewable oils and ingredients that serve as the foundation for creating healthier foods; high-performance industrial products; unique home and personal care solutions; and more sustainable fuels. Headquartered in South San Francisco, Solazyme’s mission is to solve some of the world’s biggest problems with one of the world’s smallest and earliest life forms: microalgae. For additional information, please visit Solazyme’s website at www.solazyme.com.
Solazyme®, AlgaWise™, and the Solazyme logo are trademarks of Solazyme, Inc.
Bunge Limited (www.bunge.com, NYSE: BG) is a leading global agribusiness and food company operating in over 40 countries with approximately 35,000 employees. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed and edible oil products for commercial customers and consumers; produces sugar and ethanol from sugarcane; mills wheat, corn and rice to make ingredients used by food companies; and sells fertilizer in South America. Founded in 1818, the company is headquartered in White Plains, New York.
Forward Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements that involve risks and uncertainties concerning: market acceptance of products; and the ability to maintain relationships with partners. When used in this press release, the words “will”, “expects”, “intends” and other similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such statement may be influenced by a variety of factors, many of which are beyond the control of the companies, that could cause actual outcomes and results to be materially different from those projected, described, expressed or implied in this press release due to a number of risks and uncertainties. Potential risks and uncertainties include, among others: limited operating history; limited history commercializing products; implementation risk in deploying new technologies; limited experience in ramping up and operating commercial manufacturing facilities; delays related to ramp-up of production facilities; and availability of consistent, reliable power and steam. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition.
In addition, please refer to the documents that Solazyme, Inc. files with the Securities and Exchange Commission, including its Quarterly Report on Form 10-Q, as updated from time to time, for a discussion of these and other risks. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release. Solazyme is not under any duty to update any of the information in this press release.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are not based on historical facts, but rather reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including “may,” “will,” “should,” “could,” “expect,” “anticipate,” “believe,” “plan,” “intend,” “estimate,” “continue” and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. The following important factors, among others, could affect our business and financial performance: industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products used in our business; fluctuations in energy and freight costs and competitive developments in our industries; the effects of weather conditions and the outbreak of crop and animal disease on our business; global and regional agricultural, economic, financial and commodities market, political, social and health conditions; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from acquisitions, dispositions, joint ventures and strategic alliances; our ability to achieve the efficiencies, savings and other benefits anticipated from our cost reduction, margin improvement and other business optimization initiatives; changes in government policies, laws and regulations affecting our business, including agricultural and trade policies, tax regulations and biofuels legislation; and other factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
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