Solazyme and Mitsui Enter into Multi-Year Agreement to Jointly Develop a New Suite of Tailored Algal Oils
New suite of sustainable, highly functional oils brings significant breakthroughs to the oleochemicals and functional fluids industries
SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)-- Solazyme, Inc. (NAS: SZYM) , a renewable oil and bioproducts company, and Mitsui & Co., Ltd. announced today that they have entered into a $20 million multi-year agreement to jointly develop a suite of triglyceride oils for use primarily in the oleochemical industry. The agreement includes further development of Solazyme's breakthrough high myristic algal oil, a valuable raw material in the oleochemical industry, as well as additional oils that Solazyme is developing for the oleochemical and industrial sectors.
Product development is expected to span a multi-year period, with periodic product introductions throughout the term of the joint development alliance. End use applications may include renewable, high-performance polymer additives for plastic applications, aviation lubricants, and toiletry and household products.
"Mitsui's extensive knowledge of the end use markets for the jointly-developed triglyceride products, including both the oleochemical industry and applications further downstream, makes Mitsui an ideal fit for Solazyme," said Jonathan Wolfson, CEO, Solazyme. "We look forward to rapid progress on our research and development efforts, and to commercialize these novel products thereafter."
"Collaborating with Solazyme allows us to develop highly attractive products to penetrate the traditional oleochemicals industry, and expand beyond the supply limitations caused by both regional oil production and constraints in conventional oil profiles. Solazyme's flexible manufacturing process and oil tailoring capabilities helps to support long-term competitiveness, independent of price swings inherent to this industry, while allowing us to produce tailored oils that are in demand in the marketplace," said Mr. Daiji Kojima, General Manager of Specialty chemicals Division, Mitsui. "Mitsui looks forward to strengthening its position in the oleochemicals industry through the successful development and commercialization of these novel products as a potential source of new sustainable materials to oleochemical companies including Mitsui's subsidiary, Palm-Oleo Sdn.Bhd."
Solazyme, Inc. is a renewable oil and bioproducts company that transforms a range of low-cost plant-based sugars into high-value tailored 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's oils and fuels provide compelling solutions to increasingly complex issues of fuel scarcity, energy security and environmental impact while fitting into the pre-existing multi-trillion dollar fuel infrastructure. For more information, please visit our website: http://www.solazyme.com
Solazyme®, the Solazyme logo and other trademarks or service names are the trademarks of Solazyme, Inc.
About Mitsui& Co., Ltd.:
Mitsui is one of the most diversified and comprehensive trading, investment and service enterprises in the world, with 154 offices in 69 countries as of April, 2012. Utilizing the global operating locations, network and information resources, Mitsui is pursuing business opportunities in a wide variety of fields, ranging from product sales, worldwide logistics and financing, through to the development of major international infrastructure and other projects in the following fields, Iron & Steel Products, Mineral & Metal Resources, Infrastructure Projects, Motor Vehicles & Construction Machinery, Marine & Aerospace, Chemicals, Energy, Food Resources, Food Products & Services, Consumer Services, IT, Financial & New Business and Transportation Logistics. Mitsui is actively taking on challenges for global business innovation around the world. For more information, visit http://www.mitsui.com
This press release contains certain forward-looking statements about Solazyme, including statements that involve risks and uncertainties concerning: the total value of the funding of the development agreement; the attributes of any oils developed pursuant to the agreement; the potential uses of such oils; the ability to launch successful products from such development; the speed of any such development; market demand for such products; the impact of new product introduction on long-term competitiveness and pricing; the possibility that the parties will establish commercial production assets; and Solazyme's ability to maintain its relationships with its partners. 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: Solazyme's limited operating history; its limited history in commercializing products; implementation risk in deploying new technologies; market acceptance of its products; 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, Inc. files with the Securities and Exchange Commission, including its Quarterly Reports on Form 10-Q, as updated from time to time, 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.
Genet Garamendi, 650-780-4777
VP of Communications
KEYWORDS: United States North America California
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