EcoSynthetix installs 80-million-lb. production line at its biolatex binder facility in Oosterhout, Netherlands, bringing company's annual capacity to 155 million lbs.; company expects large-scale adoption by coated paper, paperboard market

Alison Gallant

Alison Gallant

BURLINGTON, Ontario , November 4, 2011 (press release) – New state-of-the-art production line in The Netherlands supports growth

EcoSynthetix Inc. (TSX: ECO), a renewable chemicals company that produces a family of commercially proven bio-based products, today announced that it has commissioned a new 80 million pound production line within the existing facility in Oosterhout, The Netherlands, bringing the Company's current annualized capacity to 155 million pounds. It is the first of two new 80 million pound lines that the Company expects to bring on line by the end of the year. The new Oosterhout line was completed on time and on budget.

"Having additional capacity in our Netherlands facility puts us in a stronger position as we build our customer base globally," said John van Leeuwen, Chairman and CEO of EcoSynthetix. "The strength of our mill trial activity gives us the confidence to continue to build capacity to ensure that we have the capability to meet customer needs. With performance parity relative to competitive products, a significant price advantage and an extremely cost-pressured end market, we believe it is a matter of "when" rather than "if" large-scale adoption of our ECOSPHERE® BIOLATEX® binder takes place within the coated paper and paperboard market."

The new line employs the latest state-of-the-art emulsifier technology, providing EcoSynthetix with higher throughput and improved margins relative to its original two lines. The Company's fourth line is expected to be installed later this year in Tennessee, bringing the total annualized production capacity to 235 million pounds.

The installation of the Oosterhout line follows on the heels of EcoSynthetix commissioning its BIOLATEX® binder pilot plant located at the Company's Centre of Innovation in Burlington, Ontario. The pilot plant is being used for research and development purposes to support new product development. It supports the Company's plans to further penetrate the paper and paperboard industry and expand into new markets, as it continues to displace petrochemical polymers with a low cost, bio-based alternative.

About EcoSynthetix Inc. (www.ecosynthetix.com)

EcoSynthetix Inc. is a renewable chemicals company specializing in bio-based products that can be used as inputs in industrial manufacturing for a wide range of consumer products. The Company's products offer a reduced carbon footprint and are marketed primarily on the basis of lower cost, stable pricing and equal or superior performance. EcoSynthetix's lead product, ECOSPHERE® BIOLATEX® binders, is used commercially by a number of the global top 20 manufacturers in the coated paper and paperboard industry.

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