Canadian Manufacturing

EcoSynthetix plans to internalize North American manufacturing

by CM staff   

Manufacturing Operations Cleantech EcoSynthetix Manufacturing North American renewable chemicals

This investment will improve the company's ability to launch new products and reduce manufacturing costs.

BURLINGTON — EcoSynthetix Inc., a renewable chemicals company that produces bio-based products, announced plans to modify its manufacturing footprint with improvements to both its North American and European asset bases.

EcoSynthetix will internalize its North American manufacturing capacity at its Centre of Innovation and corporate headquarters in Burlington, Ont., in 2023 and install its first, in-house manufacturing asset with an annualized name-plate capacity of up to 30 million pounds. This investment will improve the company’s ability to launch new products and reduce manufacturing costs.

In Europe, EcoSynthetix is investing to upgrade its manufacturing infrastructure to enable flexibility in supply chain options and reduce manufacturing costs, at its toll manufacturing partner’s facility in Oosterhout, The Netherlands. This facility has a dedicated production line owned by EcoSynthetix with name-plate capacity of up to 80 million pounds. The company also has access to an additional variable production line at this facility with name-plate capacity of up to 40 million pounds which is currently used for production of specialty grades.

“With the expansion of our product offering into new verticals and the growing importance of supply chain management, these capital investments provide us greater flexibility and an improved cost position to meet customer demand,” said Jeff MacDonald, CEO of EcoSynthetix. “Internalizing North American production will provide us with more control of the manufacturing process as we launch new products, win new accounts and grow our Durabind™, Bioform™, EcoSphere®, and SurfLock™ offerings for the wood composites, personal care, paperboard and tissue verticals. These investments demonstrate the capital efficient nature of our continuous extrusion process and our ability to scale strategically with demand.”


The company’s North American production is currently manufactured through a toll production partner located in Dyersburg, Tennessee. This production line is owned by EcoSynthetix and operated under the contract by the Company’s toll production partner with a name-plate capacity of up to 80 million pounds and will be removed from the facility after production ceases, which is expected to occur by the end of 2023.

EcoSynthetix expects to invest approximately $2.9 million in 2023 for these investments and will incur approximately $1.0 million non-cash accelerated depreciation charges.


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