By Paul Morden, From www.theobserver.ca The Observer
BioAmber’s $125-million bio-succinic acid plant being built in Sarnia remains on budget, the company reported this week while releasing financial results for the first quarter of 2014.
Montreal-based BioAmber is building the 30,000-tonne capacity plant on Vidal Street where it will use sugar from corn to produce bio-succinic acid, a platform chemical used in plastic, cosmetics and other products.
“We have made steady progress toward completing the construction of the Sarnia plant on budget and on schedule,” said CEO Jean-Francois Huc.
BioAmber reported in March that several working days lost to the harsh winter, as well as other issues, could delay completion of the project by four to six weeks.
There have been no additional delays since then, Huc said.
“We are now nearing completion of the warehouse and have made good progress on the office and process building work,” he said.
“We’re finishing up on the underground utilities for the site and are currently on schedule.”
Construction is expected to be completed late this year, or early in 2015, followed by a period of several months needed to commission and start the plant.
Huc said the company had 15 people working in Sarnia, as of the end of the first quarter.
The plant is expected to have a permanent staff of 60.
Hiring is on schedule, with plant operators expected to be brought on this summer to begin safety and process training ahead of the start up, Huc said.
He said current projections show construction costs are within the company’s $125-million budget.
Huc reported BioAmber continues to pursue government-backed loans to complete financing for the Sarnia project.
Earlier this year, Agriculture Canada announced $10 million for the plant and another $20 million in government loans is expected to be announced in the coming quarter, Huc said.
BioAmber recently announced it had signed a contract for the Sarnia plant to be the principal supplier of bio-succinic acid for a plastics plant being constructed in Thailand.
Posted in: Headlines