15 November 2011 18:41 [Source: ICIS news]
Correction: In the ICIS story headlined "Canadian renewable chems firm EcoSynthetics eyes Asia production" dated 15 November 2011, please read the headline as "Canadian renewable chems firm EcoSynthetix..." instead of "...EcoSynthetics..." Also please read throughout text ...EcoSynthetix... instead of ...EcoSynthetics.... A corrected story follows.
TORONTO (ICIS)--EcoSynthetix is looking to set up production in ?xml:namespace>
“We do want to look carefully at
EcoSynthetix expects to determine the location and capacity of production in
For the time being, the company will continue meeting demand from Asia from its production in North America and
EcoSynthetix is building up capacities for its binders in anticipation of growing demand as it seeks to persuade paper mills to convert their production processes to corn-based binders.
“It would be a disaster if we have customers who want to start buying, and we can’t deliver,” Leeuwen said.
Earlier this month, EcoSynthetix commissioned an 80m lb/year contract manufacturing production line in the
The company expects to commission another 80m lb/year line in
Van Leeuwen said that EcoSynthetix’s binders can help a typical medium-sized paper mill save some $1m/year (€730m/year) at a time when many mills are losing money and are under competitive pressure to cut costs amid overcapacity and high oil prices.
“The high and volatile pricing of petroleum-based binder products is driving robust interest in our breakthrough product," he said. EcoSynthetix’s binders help paper mills “decouple” their costs from the price of oil, he added.
However, van Leeuwen said SB latex prices have recently moderated as market participants addressed butadiene shortages. At the same time, EcoSynthetix saw the cost of its main raw material, cornstarch, increase in past months.
Nevertheless, EcoSynthetix's binders still sell at “a significant discount” to competing SB latex binders, he said.
($1 = €0.73)
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