BURLINGTON, ON, Feb. 21, 2024 /CNW/ - EcoSynthetix Inc. (TSX: ECO) ("EcoSynthetix" or the "Company"), a renewable chemicals company that produces a portfolio of commercially proven bio-based products, today announced the successful completion and commissioning of a new production line at its Centre of Innovation in Burlington, Ontario. The new production line replaces an older line EcoSynthetix used for North American production operated by a supplier in Tennessee whose contract expired at the end of 2023.
"The new line provides us greater control and flexibility as we pursue growth opportunities in the tissue, packaging and pulp vertical and the wood composites and personal care end markets," said Jeff MacDonald, CEO of EcoSynthetix. "We successfully completed the installation below budget and we are now running commercial scale volumes on it. As we work with a growing customer base across a wider range of products, end-to-end control of our North American production improves our ability to meet the needs of our customers. The project also demonstrates how efficiently we can scale the business with new manufacturing capacity as demand in the market expands for our bio-based, low-carbon solutions."
EcoSynthetix invested approximately $1.8 million, in the new equipment and minor alterations to its existing facility in Burlington, net of $0.5 million received from the sale of redundant assets. The new line will primarily serve customers in the Americas. The Company's production assets at its toll manufacturing partner's facility in Oosterhout, The Netherlands, will continue to be the primary supplier of demand in Europe and Asia.
EcoSynthetix offers a range of sustainable engineered biopolymers that allow customers to reduce their use of harmful materials, such as formaldehyde and styrene-based chemicals. The Company's flagship products, DuraBind™, Surflock™, Bioform™, and EcoSphere®, are used to manufacture wood composites, personal care, paper, tissue and packaging products, and enable performance improvements, economic benefits and carbon footprint reduction. The Company is publicly traded on the Toronto Stock Exchange (T:ECO).
Forward-Looking Statements
Certain statements in this Press Release constitute "forward-looking" statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, objectives or achievements of the Company, or industry results, to be materially different from any future results, performance, objectives or achievements expressed or implied by such forward looking statements. The forward-looking statements in this Press Release include, but are not limited to, statements regarding the Company's ability to have greater control and flexibility as it pursues growth opportunities, develop and market bio-based, biodegradable and low-carbon solutions across a more customers and a wider range of product, the growing demand for bio-based and biodegradable solutions, and other statements regarding the Company's plans and expectations. These statements reflect our current views regarding future events and operating performance and are based on information currently available to us, and speak only as of the date of this Press Release. These forward-looking statements involve a number of risks, uncertainties and assumptions and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such performance or results will be achieved. Those assumptions and risks include, but are not limited to, the Company's ability to successfully develop new products, as well as the fact that our results of operations and business outlook are subject to significant risk, volatility and uncertainty. Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including the factors identified in the "Risk Factors" section of the Company's Annual Information Form dated February 28, 2023. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described in this Press Release as intended, planned, anticipated, believed, estimated or expected. Unless required by applicable securities law, we do not intend and do not assume any obligation to update these forward-looking statements.
SOURCE EcoSynthetix Inc.
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