June 7, 2012

 

Japan's BioAmber launches state-of-the-art facility in bio-industry

 

 

Bio-Amber will employ a state-of-the-art facility that converts agricultural feedstock such as corn and other grains into renewable bio-chemicals.

 

Mitsui and Company's major investment in Bio- Amber's biosuccinic acid facility in Sarnia is very much in keeping with the Japanese conglomerate's historical roots, says the man who heads up Mitsui's American operations.

 

Mitsuhiko Kawai, president and CEO of Mitsui USA, was on hand for the ground-breaking ceremony marking the launch of the construction phase of a new US$80-million facility, an endeavour that many suggest has the potential to transform Sarnia-Lambton's Chemical Valley into a global centre for the development of renewable bio-industrial products.

 

The state-of-the-art facility will employ a proprietary platform held by BioAmber that converts agricultural feedstock such as corn and other grains into renewable bio-chemicals that have to ability to replace may of the petroleum- based chemicals traditionally used in the manufacture of a vast range of industrial and household products.

 

Mitsui is the largest of Japan's general trading companies and handles a wide-range of products and services in nearly every industry, from banking and finance to product sales and marketing through its massive worldwide logistics and information system.

 

"Mitsui is a very old company that actually dates back to the 17th century," said Kawai, adding that with the business of banking and commodity trading as its core, the company has always been at the forefront of Japanese society and industry, which today is world-wide.

 

The original company was founded in 1622 by Takatoshis Mitsui, a fourth generation shop keeper whose father operated a soy brewery, pawn business, and currency exchange in Edo, Japan, which is present-day Tokyo.

 

Kawai noted that the currency exchange later evolved into banking and the family enterprise eventually got into grain trading, coal mining, ship building and the export of silks and other textiles.

 

Kawai noted that during Japan's feudal era, the country's landlord families were obliged to pay their taxes with rice.

 

As a consequence, he said the shogunate (ruling class) needed a means of exchanging that rice into cash and the Mitsui family accommodated them by providing the government with cash and, in turn, marketing the grain.

 

"So the banking business has long been a major part of the family's business," he said.

 

He noted that the modern- day Mitsui company was actually incorporated in 1876 and as such has operated successfully for 135 years. He noted that in the early days the company was a major exporter of silk from Japan to Europe which evolved into the export of other textiles.

 

He said by the turn of the 20th century the company was also heavily involved in finance, coal mining and ship building.

 

"So you can see that Japanese society, its industry and the company have evolved together," he said, adding that after the Second World War the company became heavily involved in the petrochemical business in addition to the production of natural gas on a global scale.

 

"We have always been at the forefront of industry by investing, financing, marketing and growing companies in partnership with others."

 

Kawai said Mitsui made its first investment in Bio- Amber in 2009, largely because it was impressed with the company's strong management style.

 

He said Mitsui also saw potential in the "very reliable and promising technology" that BioAmber holds.

 

"We believe the 21st century will be about companies like BioAmber," he said.

 

"We are very excited about the future of BioAmber and that is why we are here."