Metabolix to Build Commercial Manufacturing Facility to Produce Bio-Derived Plastics

Metabolix Inc., a company developing and commercializing environmentally sustainable and totally biodegradable Natural Plastic, announced that permits have been received for a commercial manufacturing facility designed to produce 110 million pounds of biodegradable Natural Plastic annually and will now commence construction. The facility is being constructed as part of a joint venture agreement with Archer Daniels Midland Company, a world leader in agricultural processing and fermentation.

“Initiating construction of this first commercial manufacturing facility for Natural Plastic in Clinton, Iowa marks a major milestone for Metabolix and our strategic alliance with ADM,” said Jim Barber, President and CEO of Metabolix. “We believe that Natural Plastic is a breakthrough technology that has the potential to provide environmentally-conscious companies and consumers with a renewable and sustainable alternative to petrochemical-based plastics, and to positively impact climate change, pollution and energy security.”

Metabolix Natural Plastics can be used as an alternative to petrochemical plastics in a wide variety of applications, including coated paper, film or bags, and thermoformed and molded goods. They are produced using a patented, biological fermentation process that converts agricultural raw materials such as corn sugar into a versatile range of plastics with excellent durability in use but that also biodegrade benignly in a wide range of environments, including marine and wetlands.

The Natural Plastic commercial manufacturing facility will be located adjacent to ADM’s corn wet mill in Clinton, Iowa. The plant will utilize starch from the mill’s existing corn grind capacity as raw material for Natural Plastic production, and is designed to initially produce 110 million pounds annually. ADM and Metabolix are working together in a strategic alliance to commercialize Metabolix‘s patented and proprietary Natural Plastic technology. Permits enabling the start of construction were issued on November 30, 2006 by the Iowa Department of Natural Resources. Commercial production of Natural Plastic is expected to begin in 2008. Metabolix and ADM are currently operating a pilot manufacturing facility to produce precommercial quantities of material and developing applications with selected customers.

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