BioAmber +17% on 210K tons/year sales contract

|About: BioAmber (BIOA)|By:, SA News Editor

BioAmber (BIOA +16.9%) shares surge after the chemical company said late Monday it had won a 15-year contract from Vinmar International to deliver 210K tons/year of succinic acid from its Sarnia, Canada, plant.

BIOA says 50% of the Sarnia capacity is under take-or-pay, with total contract demand exceeding capacity.

BIOA and Vinmar also broaden the scope of a previously announced 100K ton/year BDO plant, to also produce 70K tons/year of succinic acid with Vinmar off-taking 100% of the butanediol produced and 70% of the bio-succinic acid produced for 15 years, and commits to off-take 75% of production from a new, third bio-succinic acid plant with 200K tons/year capacity that BIOA plans to start in 2020.