Kemira and IFF Form €130 Million Joint Venture to Produce Bio-Based Materials

Kemira and IFF have made a final investment decision and will proceed with the formation of a joint manufacturing company to produce renewable bio-based products on a commercial scale.

The total investment is estimated at approximately €130 million and commercial production is expected to start by the end of 2027. The two companies will each hold a 50% stake in the joint venture.

Kemira and IFF have been strategic partners since 2020. The Designed Enzyme Biomaterials (DEB) technology platform is a novel and unique process technology that utilizes plant sugars and can be used in a variety of different applications. Kemira has exclusive global rights to commercialize DEB™ biomaterials in the paper, board and water treatment markets.

The new manufacturing plant will be located at the IFF biorefinery in Kotka, Finland to leverage existing synergies and infrastructure as well as European bio-based raw materials. The plant will convert up to 44,000 tonnes of plant sugars into bioproducts, including sustainable, high-performance biopolymers for a variety of applications, and will serve as a platform material for further processing to make new renewable products.

The plant is designed to produce multiple grades of DEB biomaterials to meet a variety of market applications. The project is expected to create approximately 30 direct new jobs in the Kotka region, with additional jobs created during the project construction phase – a major positive development for the Kotka region’s economy.

“We have been working with IFF since 2020 to leverage the DEB platform technology, which has enabled us to bring sustainable innovation to key markets,” said Antti Salminen, President and CEO of Kemira.

“The new joint venture will build on this initial success, allowing us to scale up production and deliver new, performance-competitive alternatives to fossil products in key markets such as paper and board packaging, paper coatings and water treatment, while continuing to develop opportunities in other growth markets.”

“Our collaboration with Kemira has reached an important milestone, enabling us to scale up production of breakthrough bio-based materials to meet the growing demand for high-performance and sustainable alternatives to fossil-derived polymers,” said Erik Fyrwald, CEO of IFF.

“IFF’s DEB technology not only guarantees higher purity and consistency compared to traditional biopolymers, but also improves performance across a wide range of applications. This innovative approach allows us to combine biodegradability and material sustainability while maintaining cost-effectiveness and the high performance our customers expect.”