Corbion says it will focus on strengthening its core business in ingredients for food and biochemicals (biobased ingredients), while leveraging its technology to build new business platforms in the biotechnology arena (biobased innovations).
“Our updated strategy addresses the global megatrends of resource depletion, population growth and food security,” says CEO Tjerk de Ruiter.
“Corbion will accelerate its thrust into the biotechnology arena, making the next step in the bioplastics value chain by becoming a polylactide (PLA) producer and bring new biodegradable solutions to the plastic market.”
The biobased ingredients business unit, comprising the food- and biochemical businesses, will focus on improved financial performance.
To improve productivity, the company has initiated Streamline, a program to align the organization to portfolio choices, simplify business processes, and optimize manufacturing footprint.
This will result in about 200 job losses across the company and annual cost savings of €20 million (US$25 million) both by 2016.
This includes the consolidation of its blending operations in Totowa, New Jersey, the US, triggering the closure of its Kansas Avenue facility.
Meanwhile, the biobased innovations business unit consists of its PLA/lactide business, succinic acid joint venture with BASF, its gypsum-free fermentation technology, fermentations based on 2nd generation biomass, and other longer-term development projects.
This unit will drive for growth via a disciplined stage-gate investment approach.
Based on an attractive demand outlook for PLA, albeit at a lower growth pace than previously assumed, the company will invest in a 75 kTpa PLA plant (estimated €60 million capex) in Thailand.
Corbion says it will begin the investment if it can secure at least one-third of plant capacity in committed PLA volumes from customers.
The company will also continue to explore strategic alliances as part of its PLA growth strategy in order to enhance the business opportunities while mitigating the associated risks.
