ADM recently undertook a strategic review of its business investments, and made the decision to terminate their participation in the joint venture. They have always had this right, as we have previously disclosed. We learned of the decision this week and did not expect it. ADM indicated that projected financial returns were too uncertain as the basis for their decision. As a result, ADM will retain its manufacturing plant in Clinton, Iowa.The Metabolix PHA bioplastics technology works well at commercial scale. In particular, the fermentation scale-up and performance was exceptional, as was feedback from the market. That being said, capital costs were more than anticipated and projected future operating costs, including raw materials costs, were uncertain and as you know, the times for commercializing this new innovative material have been longer than anticipated.
Metabolix's CEO Discusses Business Update (Transcript)
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