×

Amyris Brotas Plant Sold Out for 2017-2020 Farnesene Volume ─ Project for Dedicated Flavors & Fragrances Initiated

EMERYVILLE, Calif., March 21, 2016 (GLOBE NEWSWIRE) -- Amyris, Inc. (Nasdaq:AMRS), the industrial bioscience company, today announced an expansion project to add a dedicated flavors & fragrances manufacturing unit to its Brotas industrial fermentation complex in Brazil. This planned expansion enables the company to meet demand for contracted flavors and fragrances molecules for its collaboration partners.

The expansion provides for focused use of the current Brotas industrial fermentation capacity to supply Amyris’s current partners and collaborators based on projected demand for Biofene® (Amyris-branded farnesene) serving the polymers, nutraceuticals and solvents markets through 2020.

Expected demand will require new farnesene manufacturing capacity beyond the company’s current capacity at its Brotas plant. Amyris is in active discussions with current collaborators and partners to provide financing for the project, with construction expected to start in the second half of 2016.

“After several years of application and product development activities in collaboration with our strategic partners, we’ve now transitioned to the commercialization phase of many applications,” said John Melo, Amyris President & CEO. “We are very fortunate that many of our partnerships are focused on solving supply chain challenges by replacing current raw material sources with lower-cost, better-performing, sustainably sourced material. This is enabling us to grow our supply of farnesene into these markets at a faster rate than we expected.”

Continued Melo, “We expect to have five or more high performance fragrance molecules scaled as we complete 2016 and this, combined with strong farnesene demand, has enabled us to initiate a project for a dedicated flavors & fragrances operation at Brotas. We are very excited for our Brazilian operation as this will result in our plant becoming one of the largest providers of flavors and fragrances ingredients to the world as we continue to execute and deliver contracted molecules to our partners. This would not be possible without the excellent track record of our manufacturing and engineering teams’ ability to meet or exceed our partners’ manufacturing requirements at large scale.”

Amyris Personal Care Business (Flavors, Fragrances, Food ingredients and Cosmetic Ingredients) is Company’s Largest and Fastest-Growing Business

  • The personal care business represented $25 million of 2015 revenue and is expected to contribute $40 million of 2016 revenue.

  • The company expects existing collaboration and supply agreements to generate over $200 million in revenue through 2020 from the company’s flavors and fragrances partners (including the five largest fragrance houses in the world) and other industry leading companies.

  • The company’s first food ingredients collaboration is successfully underway with plans to begin producing a disruptive, large-market product for this customer in 2017.

Customer Commitments Underpin Brotas Utilization through 2016 – Anticipated to Ramp Through 2020

  • Amyris entered 2016 with key customer commitments in place for farnesene applications, which represent a substantial percentage (approximately 88% of anticipated product revenue based on information from these customers) of planned production volume at Brotas during 2016.

  • During the fourth quarter of 2015 Amyris started shipping farnesene for the commercial production of tires, adhesives, nutraceuticals and solvents. These applications are expected to consume the full production of Brotas in 2016 and keep the plant capacity sold out through 2020, including the added capacity as a result of the dedicated flavors and fragrances industrial production unit.

About Amyris

Amyris is the integrated renewable products company that is enabling the world’s leading brands to achieve sustainable growth. Amyris applies its innovative bioscience solutions to convert plant sugars into hydrocarbon molecules, specialty ingredients and consumer products. The company is delivering its No Compromise® products in focused markets, including specialty and performance chemicals, fragrance ingredients, and cosmetic emollients. More information about the company is available at www.amyris.com.

Forward-Looking Statements

This release contains forward-looking statements, and any statements other than statements of historical facts could be deemed to be forward-looking statements. These forward-looking statements include, among other things, statements regarding future events (such as sell-out of farnesene manufacturing capacity at Brotas through 2020, revenues to be generated by the company’s personal care business in 2016, collaboration and product revenues to be generated through 2020 from the company’s flavors and fragrances partners, the addition of a dedicated flavors and fragrances manufacturing unit to the company’s existing fermentation plant in Brazil, projected demand for flavors and fragrances products from company’s strategic partners, projected demand for Biofene for the polymers, nutraceuticals and solvents markets through 2020, the need for additional farnesene manufacturing capacity beyond the company’s existing Brotas plant, participation of existing partners in, and funding and timeline for, construction of a flavors and fragrances manufacturing unit at Brotas, the rate of growth of demand for Biofene, the number of fragrance molecules to be scaled up in 2016, the company’s Brotas plant becoming one of the largest providers of flavors and fragrances ingredients to the world, continued delivery of contracted molecules to partners, the timing for commencement of production of a food ingredients product for a collaboration partner, and percentage of projected 2016 product revenue and Brotas volume capacity represented by existing commitments for farnesene offtake),that involve risks and uncertainties. These statements are based on management's current expectations and actual results and future events may differ materially due to risks and uncertainties, including the company’s liquidity and ability to fund operating and capital expenses, Amyris’s reliance on third parties to achieve its goals (including for funding of any construction or significant expenses associated with establishing a new plant), the reliance by the company on a small number of customers and partners for substantial proportions of its manufacturing offtakes and sales and collaboration revenues, timing and execution risks associated with manufacturing, uncertainty regarding timing of closing transactions and growth in sales, potential delays or failures in development, production and commercialization of products, and other risks detailed in the "Risk Factors" section of Amyris's quarterly report on Form 10-Q filed on November 9, 2015. Amyris disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.

Amyris, the Amyris logo and Biofene are trademarks or registered trademarks of Amyris, Inc.

Contact: Amyris, Inc. Peter DeNardo Director, Investor Relations and Corporate Communications (510) 740-7481 investor@amyris.com pr@amyris.com

Source:Amyris