12 January 2012 22:06 [Source: ICIS news]
HOUSTON (ICIS)--US-based agricultural processor Archer Daniels Midland (ADM) will end its Telles bioplastics joint venture with Metabolix, effective on 8 February, Metabolix said on Thursday.
Metabolix plans to restructure its bioplastics business and shrink its operations, the company said without elaborating.
Still, Metabolix will keep a core team in the bioplastics group, it said. The company is now free to talk with new partners for its bioplastics.
Meanwhile, Metabolix will continue to focus on developing renewable industrial chemicals, and it is in ongoing talks with possible partners, the company said.
Metabolix and ADM created Telles in July 2006. Telles sold bioplastics made with polyhydroxyalkanoate (PHA), marketed as Mirel and Mvera.
ADM is ending the joint venture because the returns were too uncertain, Metabolix said. ADM will keep the plant in Clinton, Iowa, which has been producing Mirel.
"Clearly, we are disappointed by ADM's decision to withdraw from Telles," according to a statement by Richard Eno, Metabolix chief executive. "While this is a setback, we remain committed to successfully commercialising PHA bioplastics."
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