Metabolix to produce bio-plastic; shares rise
Shares of Metabolix, Inc. (Nasdaq: MBLX) set a new 52-week high in intraday trading following news this morning that the Cambridge, Mass.-based biotechnology company will produce the world’s first bio-based and fully biodegradable plastic.
Metabolix and agricultural processor Archer Daniels Midland Company (NYSE: ADM) will jointly produce Mirel Natural Plastics, a family of high performance natural plastics made from renewable resources like corn sugar that provide an alternative to traditional, oil-based plastics. Metabolix and ADM will commercialize Mirel through their joint venture Telles, which is building its first commercial-scale plant in Clinton, Iowa. The plant will produce 110 million pounds of Mirel annually starting 2008.
“Today marks an important step in providing consumers with products made of plastics that don't harm the environment,” Metabolix CEO and President Jim Barber said before the opening bell. “We are now commercializing bio-based, renewable alternatives to petroleum-based plastics that will reduce our reliance on oil and the impact petroleum use has on climate change.”
Metabolix announced it’s working with more than 40 prospective customers on numerous applications for Mirel, including consumer and agricultural products. It expects that Telles’ customers will market their natural plastic products co-branded with the Mirel name and logo.
Two million barrels a day, about 10% of U.S. oil consumption, is used to make the more than 350 billion pounds of plastic is produced each year in the United States. Plastics production contributes to the country’s dependence on oil and harms the environment, since plastics do not biodegrade.
At 01:11 p.m. ET shares were up $3.54, or 19.68%, to $21.53. The previous 52-week high was $21.18, achieved on Dec. 14. The 52-week low of $14.09 was set on Nov. 10, 2006.
