New multi-year license and supply agreement builds on successful joint development of biobased coatings for paper and board products using sustainable biopolymer
Danimer Scientific, Inc. (NYSE: DNMR) and Kemira announced today a multi-year license and supply agreement, exclusive in Kemira's core markets, to commercialize biobased barrier coatings for paper and board products. The companies will introduce the newly developed coatings for food and beverage industry applications within North and South America, Europe, the Middle East and Africa in the coming years. The relevant dispersion barrier market size is currently around EUR 500 million and is expected to grow around 10% per annum.
The new agreement builds on the companies' successful partnership, originally announced in December 2020, to develop a coating and surface treatment that ensures paper and board items, such as single-use coffee cups, are home and industrially compostable, as well as biodegradable in soil and water environments. The companies developed the coating material using Danimer's biopolymer PHA, which is produced from vegetable oils using modern biotechnology and serves as a biodegradable alternative to traditional plastics.
"This new, exclusive agreement is a major step in realizing our biobased strategy to deliver high-quality, sustainable and circular packaging solutions to our customers," said Antti Matula, SVP, Global Product Lines Business Development for Kemira Pulp&Paper. "We're excited to expand our partnership with Danimer to harness the full potential of PHA globally. Together we will bring new biobased and circular products to markets, an important milestone in reaching our biobased growth targets and differentiating from competitors."
The new PHA-based aqueous barrier coatings are heat sealable and offer an excellent oil, water and grease barrier. Additional benefits include repulpability, which enables the paper to be recycled without special equipment for full fiber recovery. These attributes further enhance the sustainability of the material and enable brands to provide products that contribute to a circular economy and reduce the impact of plastic waste on the environment. The PHA coatings can replace polyethylene and provide a viable alternative to per- and polyfluoroalkyl substances (PFAS). PFAS, also known as "forever chemicals," are increasingly being phased out in food packaging around the world due to potential health risks associated with their use.
"This expansion of our partnership with Kemira represents several important milestones in Danimer's mission to reduce plastic waste," said Stephen E. Croskrey, Chairman and CEO of Danimer Scientific. "First, this successful project reflects the potential for PHA to serve as a sustainable alternative to traditional plastic across multiple categories. Second, this new license and supply agreement establishes a new revenue stream that will further support the global commercialization of this material. We are grateful for Kemira's continuing partnership and look forward to helping them bring these coatings to market."
Kemira is a global leader in sustainable chemical solutions for water intensive industries. We provide best suited products and expertise to improve our customers' product quality, process and resource efficiency. Our focus is on pulp paper, water treatment and energy industry. In 2021, Kemira had annual revenue of around EUR 2.7 billion and around 5,000 employees. Kemira shares are listed on the Nasdaq Helsinki Ltd. www.kemira.com
About Danimer Scientific
Danimer is a pioneer in creating more sustainable, more natural ways to make plastic products. For more than a decade, its renewable and sustainable biopolymers have helped create plastic products that are biodegradable and compostable and return to nature instead of polluting our lands and waters. Danimer's technology can be found in a vast array of plastic end products that people use every day. Applications for its biopolymers include additives, aqueous coatings, fibers, filaments, films and injection-molded articles, among others. Danimer holds more than 390 granted patents and pending patent applications in more than 20 countries for a range of manufacturing processes and biopolymer formulations. For more information, visit www.DanimerScientific.com.
Please note that in this press release we may use words such as "appears," "anticipates," "believes," "plans," "expects," "intends," "future," and similar expressions which constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting the Company and therefore involve a number of risks and uncertainties. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. Potential risks and uncertainties that could cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied by forward-looking statements in this release include, but are not limited to, the overall level of consumer demand on our products; general economic conditions and other factors affecting consumer confidence, preferences, and behavior; disruption and volatility in the global currency, capital, and credit markets; the financial strength of the Company's customers; the Company's ability to implement its business strategy, including, but not limited to, its ability to expand its production facilities and plants to meet customer demand for its products and the timing thereof; risks relating to the uncertainty of the projected financial information with respect to the Company; the ability of the Company to execute and integrate acquisitions; changes in governmental regulation, legislation or public opinion relating to our products; the Company's exposure to product liability or product warranty claims and other loss contingencies; disruptions and other impacts to the Company's business, as a result of the COVID-19 global pandemic and government actions and restrictive measures implemented in response; stability of the Company's manufacturing facilities and suppliers, as well as consumer demand for our products, in light of disease epidemics and health-related concerns such as the COVID-19 global pandemic; the impact that global climate change trends may have on the Company and its suppliers and customers; the Company's ability to protect patents, trademarks and other intellectual property rights; any breaches of, or interruptions in, our information systems; the ability of our information technology systems or information security systems to operate effectively, including as a result of security breaches, viruses, hackers, malware, natural disasters, vendor business interruptions or other causes; our ability to properly maintain, protect, repair or upgrade our information technology systems or information security systems, or problems with our transitioning to upgraded or replacement systems; the impact of adverse publicity about the Company and/or its brands, including without limitation, through social media or in connection with brand damaging events and/or public perception; fluctuations in the price, availability and quality of raw materials and contracted products as well as foreign currency fluctuations; our ability to utilize potential net operating loss carryforwards; and changes in tax laws and liabilities, tariffs, legal, regulatory, political and economic risks. More information on potential factors that could affect the Company's financial results is included from time to time in the Company's public reports filed with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. All forward-looking statements included in this press release are based upon information available to the Company as of the date of this press release, and speak only as of the date hereof. We assume no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release.
Antti Matula, Senior Vice President, Global Product Lines Business Development
Mikko Pohjala, Vice President, Investor Relations
Tel: +358 40 838 0709
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