Sime Darby Invests in Verdezyne to Produce Palm-based Products for Adhesives and more

Kuala Lumpur -- Sime Darby Berhad is taking a stake in an industrial biotechnology company, Verdezyne Inc., as part of an initiative to pursue strategic growth areas for its plantation business. Sime Darby Renewables, a new unit under Sime Darby Plantation, will spearhead this initiative which essentially focuses on converting traditional and non-traditional palm-based commodities into products of higher value.

This initiative with Verdezyne was launched in a ceremony witnessed by Malaysian Prime Minister YAB Dato Sri Mohd Najib Tun Haji Abdul Razak and United States President Barack Obama. Sime Darby Berhad was represented by Tan Sri Dato Seri Mohd Bakke Salleh while Verdezyne Inc. was represented by its President and CEO Dr. E. William Radany, PhD.

California-based Verdezyne has proprietary technologies to competitively produce chemicals derived from sustainable materials, which can be found in the oil palm value chain. These chemicals are used to make everyday items like clothing, footwear and adhesives, as well as industrial products such as automobile parts. Currently, these chemicals are mainly derived from petroleum-based feedstocks such as benzene and butadiene.

Verdezynes current products targeted for commercialization have a potential combined market size of approximately RM37 billion with laboratory, pilot and demonstration-scale validation already carried out. Results so far have attracted favourable interest from the market.

Sime Darby plans to emerge as the single largest investor in Verdezyne, together with existing investors BP Alternative Energy, Royal DSM, a global life sciences group; OVP Venture Partners and Monitor Ventures, subject to definitive documentation. Verdezyne has healthy financial prospects and the Company secured a strategic commercial relationship with Universal Fiber Systems, LLC to supply its bio-based adipic acid for certain exclusive fields of use. Universal Fiber Systems is a global multi-polymer fiber producer, and markets its yarn systems globally with operations in North America, Europe and Asia. Verdezyne is also actively pursuing other commercial opportunities with a diverse group of international chemical companies.

"Sime Darby is taking strategically measured steps to build and nurture a sustainable portfolio of palm-related industrial biotechnology companies. There are exciting opportunities which can leverage on our substantial plantation assets and we are keen to capitalise these for future growth," said Tan Sri Dato Seri Mohd Bakke Salleh, President and Group Chief Executive, Sime Darby Berhad.

Verdezyne began operations in 2005 and has chosen Malaysia as its manufacturing hub which motivated them to obtain the BioNexus status in September 2013. Its first own commercial plant, with an annual capacity in excess of 13,000 metric tons, is expected to generate approximately 140 knowledge workers in the fields of R&D and engineering.

"Over the past year, with the invaluable assistance of the Malaysian Biotechnology Corporation, Verdezynes management team researc