Myriant Technologies, Inc. Announces US$60 Million Strategic Equity Investment From PTT Chemical Group
QUINCY, Mass., Jan. 24, 2011 /PRNewswire/ -- Myriant Technologies, Inc. (Myriant), a privately-held, biotech developer and manufacturer of renewable bio-based chemicals, announced today the closing of a $60 million strategic equity investment from PTT Chemical Group (PTT Chemical), Thailand's largest petrochemical producer.
Myriant will utilize the investment for the ongoing development of its bio-based high-value chemicals technology, as well as to help fund the rapid commercialization of its succinic acid platform, including construction of a succinic acid plant in Lake Providence, Louisiana. The investment includes the signing of the Head of Agreement for the establishment of a joint venture between PTT Chemical and Myriant for deploying Myriant's technology in Southeast Asia. By combining PTT Chemical's R&D capabilities and Myriant's sophisticated technology, the joint venture will further drive technologies for the manufacturing of green chemicals using the abundant high quality bio-based feedstock available in Thailand and the Asian region.
"With this investment, PTT Chemical Group supports Myriant's leadership position and proven track record in bringing innovation to the marketplace," said Stephen Gatto, Myriant Chairman and Chief Executive Officer. "We are thrilled to have found a partner that shares our vision of the ever-increasing opportunity represented by bio-based chemicals, and one that provides the desire to deploy this technology on a global scale at an accelerated pace. PTT Chemical's breadth of commercial and technical expertise, coupled with their deep knowledge of critical Asian markets, will propel Myriant to become a global leader in industrial biotechnology."
"PTT Chemical Group invested USD 60 million in Myriant and will further collaborate with them in the research and development for green chemicals," said Mr. Veerasak Kositpaisal, President & Chief Executive Officer of PTT Chemical. "These green products will meet the continuously increasing demand for environmentally friendly products, driven largely from customers' awareness; especially in the rapidly growing Asian markets. The involvement in the succinic acid plant in Louisiana through this investment in Myriant is the strategic entry point that will not only accelerate the commercialization of bio-based products but also strengthen our competitive advantage in bio-based technology."
In late December, with Louisiana Governor Bobby Jindal, Myriant announced that it will soon begin construction on a 30 million pound bio-based succinic acid production plant in Lake Providence, Louisiana that will be the world's largest. Succinic acid has been recognized as one of the most promising biochemicals that can be produced from renewable feedstocks to replace a wide range of petroleum-based chemicals. Myriant's renewable succinic acid offers cost competitive performance, reduced price volatility and a significantly enhanced environmental footprint as compared to petroleum-based alternatives.
HSBC was the financial adviser to PTT Chemical Group for this transaction and Morgan Joseph was the adviser to Myriant Technologies for this transaction.
PTT Chemical is a fully-integrated petrochemical and chemical company, combining visionary leadership and innovation in the chemical industry. PTT Chemical aspires to develop sustainable growth based on social benefit and global environmental standards under its vision to be the "Leading chemical company for better living through innovative technology and people." Details are available at www.pttchem.com.
With a world-renowned team of molecular biologists, engineers and chemists, Myriant utilizes proprietary technology to advance the development of low-cost cellulosic sugars for the sustainable commercialization of high-value specialty chemicals. The company's D(-) lactic acid started production at commercial scale in June 2008 for use in polylactic acid. Myriant is headquartered in Quincy, Massachusetts. Details are available at www.myriant.com.
SOURCE Myriant Technologies, Inc.