Specialty chemicals company Kemira and global ingredients and biosciences firm IFF announced Thursday they have reached a final investment decision to form a joint venture for the commercial-scale production of renewable biobased materials. The total investment in the project is estimated at around €130 million, or approximately $140 million U.S. dollars, with commercial production slated to begin in late 2027.

Both Kemira and IFF will hold a 50% stake in the newly formed manufacturing company. The partnership builds on a strategic collaboration between the two firms that began in 2020, focusing on IFF’s Designed Enzymatic Biomaterial (DEB) technology platform. This novel process utilizes plant-based sugars to create a versatile range of biomaterials for diverse applications. Kemira holds exclusive global rights to commercialize DEB biomaterial within the paper, board, and water treatment markets.

The new manufacturing plant will be located at IFF’s biorefinery in Kotka, Finland. This strategic location will leverage existing infrastructure and synergies, as well as access to European biobased raw materials. The facility is projected to convert up to 44,000 metric tons of plant sugars annually into bioproducts. These will include sustainable, high-performance biopolymers suitable for various applications and will serve as platform materials for the development of additional renewable products. The plant is designed to produce multiple grades of DEB biomaterial to cater to different market needs.

The project is expected to generate approximately 30 direct new jobs in the Kotka region, with additional employment opportunities during the construction phase. This development represents a significant economic boost for the local area.

“Since 2020, we’ve been collaborating with IFF using the DEB platform technology, which has allowed us to bring sustainable innovation to our key markets,” said Antti Salminen, Kemira’s President & CEO. “The new joint venture will build on this initial success, enabling us to scale up production and provide new performance-competitive alternatives to fossil-based products in key markets, including paper and board packaging, paper coatings, and water treatment, while continuing to develop opportunities across other growth markets.”

Erik Fyrwald, IFF CEO, commented, "Our partnership with Kemira has reached a significant milestone, enabling us to scale the production of breakthrough biobased materials to meet the large and growing demand for high-performing and sustainable alternatives to fossil-derived polymers. IFF’s DEB technology not only guarantees superior purity and consistency compared to traditional biopolymers but also enhances performance across various applications. This innovative approach allows us to combine biodegradability and material sustainability while maintaining cost efficiency and the high performance our customers expect."