March 28, 2018 - Paul Morden, Sarnia Observer -�BioAmber, a Montreal-based company with a manufacturing site in Sarnia, reported a record quarter at the end of 2017 with revenue of $5.4 million.Revenue in 2017 totalled $14.9 million compared to $8.3 million in 2016, an 81-per-cent increase, driven by increased sales of bio-succinic acid from the Sarnia plant opened in 2015, the company said this week.BioAmber uses corn syrup to make succinic acid, a building block chemical used in products ranging from paints and plastics to cosmetics and food additives at its first large-scale commercial production site next to Vidal Street in Sarnia.�We are pleased with the solid growth, which is reflective of our growing customer base and the potential of bio-succinic acid as an important chemical building block,� CEO Rick Eno said Wednesday during a quarterly earnings conference call.�The entire company is working to move our operations to be gross margin positive at the plant level, followed by profitability at the corporate level,� Eno said.�We believe this performance will unlock growth opportunities for us, including a second plant that will convert bio-succinic acid into butanediol and THF (tetrahydrofuran), which reflect an $8-billion market.�The company said in late 2017 it was focusing on Sarnia as the potential site for a second plan.Eno said BioAmber has an �aggressive� program to reduce costs at the Sarnia plant by 25 to 35 per cent while maintaining high product quality.�We believe we are the lowest cost producer in the world and will continue to aggressively drive down our cost structure,� he said.Earlier this year, BioAmber renegotiated debt and raised $7 million in an equity offering, Eno said.�We are currently working with partners, lenders and other investors as we continue to fund the company�s growth.�The company�s shares were de-listed recently by the New York Stock Exchange and Toronto Stock Exchange but Eno said BioAmber is �evaluating a number of alternatives to regain a listing on a major exchange.�BioAmber added five new customers in the fourth quarter of 2017 and another eight in early 2018, giving it more 80 in 17 countries.�The promise of bio-succinic acid is panning out and we�re growing the business substantially,� Eno said.He said the company is working with several customers on new applications, including animal feed and PET plastic containers.�Bio-succinic acid is showing potential to reduce the cost, as well as the greenhouse gas impact, of PET bottle production,� Eno said.�We are scaling up this innovation with developmental partners in China and Europe.�Eno said BioAmber has also been accepted into Ontario�s cap and trade system and expects to benefit from selling carbon credits.�We foresee the sale of these credits having a positive impact as we ramp up to full capacity.�
