Solazyme, Inc. (NASDAQ: SZYM) (“Solazyme”), a renewable oil and bioproducts company, announced today that it has entered into a Joint Venture Expansion Framework Agreement with Bunge Global Innovation LLC (“Bunge”), a wholly-owned subsidiary of Bunge Limited (NYSE: BG), a leading global agribusiness and food company.
The agreement sets forth the intent of the partners to expand joint venture-owned oil production capacity at Solazyme Bunge Renewable Oils from the current 100,000 metric tons under construction in Brazil to 300,000 metric tons by 2016 at select Bunge owned and operated processing facilities worldwide.
Also, the companies intend to expand the portfolio of oils to be produced out of their joint venture facility in Brazil. The expanded field and portfolio of oils would include certain tailored food oils for sale in Brazil, where Bunge is the largest supplier of edible oils through several of its retail brands. The parties intend to work together through joint market development to bring new healthy and nutritious edible oils to the Brazilian market.
“Solazyme’s renewable oil technology provides the flexibility to produce multiple high value oils from a single facility. After building a strong commercial relationship together, we believe there is a broader scope of opportunities ahead of us,” said Ben Pearcy, Managing Director, Sugar & Bioenergy, and Chief Development Officer, Bunge Limited.
“Bunge’s global presence in sugar, significant presence in vegetable oil markets and large-scale processing experience make it an ideal partner for Solazyme. Our shared experience to date makes capacity expansion together a very attractive proposition and we look forward to rapid commercialization of the tailored oils we will produce,” said Jonathan Wolfson, CEO, Solazyme.
The parties anticipate negotiation of definitive agreements in the coming months.
About Solazyme, Inc.
Solazyme, Inc. (NASDAQ: SZYM) is a renewable oil and bioproducts company that transforms a range of low-cost plant-based sugars into high-value oils. Headquartered in South San Francisco, Solazyme’s renewable products can replace or enhance oils derived from the world’s three existing sources – petroleum, plants and animal fats. Initially, Solazyme is focused on commercializing its products into three target markets: (1) fuels and chemicals, (2) nutrition and (3) skin and personal care. Solazyme®, the Solazyme logo and other trademarks or service names are trademarks of Solazyme, Inc.
About Bunge Global Innovation LLC
Bunge Global Innovation is an interdisciplinary team applying the latest thinking and technologies to drive innovation across all Bunge business segments. Its mission is to scout, develop, buy, sell or license technologies that will improve Bunge’s sustainability, profitability and competitive advantage.
About Bunge Limited
Bunge Limited (www.bunge.com, NYSE: BG) is a leading global agribusiness and food company operating in approximately 40 countries with over 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 and corn to make ingredients used by food companies; and sells fertilizer in North and South America. Founded in 1818, the company is headquartered in White Plains, New York.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains certain forward-looking statements about Solazyme, including statements that involve risks and uncertainties concerning: [its commercialization plans; its build-out of capacity; the anticipated demand for its products; the attributes of its products and its ability to deliver profitable and sustainable growth]. 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. Any such statement may be influenced by a variety of factors, many of which are beyond the control of Solazyme, 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: implementation risk in deploying new technologies; Solazyme's limited history in commercializing products; market acceptance of its products; agreement on terms for the expansion; its limited experience in constructing and operating commercial manufacturing facilities; its ability to obtain requisite regulatory approvals; its ability to enter into and maintain strategic collaborations; and its access, on favorable terms, to any required financing. 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 of Solazyme.
In addition, please refer to the documents that Solazyme files with the Securities and Exchange Commission, including its Quarterly Reports on Form 10-Q, 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.