DDDA Plant Planned in Malaysia


U.S. biotech company Verdezyne Inc. has reached a preliminary agreement to build a factory in Malaysia to manufacture dodeconedoic acids, at least in part for lubricant applications. Verdezyne claims it will be the worlds first plant to make DDDA from renewable feedstocks.

DDDA is used in the production of nylon and resins but a spokesman told Lube Report Asia,Grease and lubricants made withDDDAhave high-performance characteristics in both automotive and aviation applications, and we are in the process of exploring the opportunities in the lubricant space.

The Malaysia facility would be Verdezynes first commercial scale manufacturing site. The company, which is based in Carlsbad, Califorinia, has patents for processing plant oils into chemicals that currently come mostly from petroleum. It is enlisting investment partners that can help it further develop its technology while also moving into production.

On April 28, Verdezyne signed a memorandum of understanding with its latest prospective investor, MalaysiasSime Darby Bhd. The event was attended by Malaysian Prime Minister Datuk Seri Najib Tun Razak and U.S. President Barack Obama.The agreement calls for Sime Darbyto pay about U.S. $30 million by the end of this month for a 30 percent stake in the company. Sime Darby would also provide the factorys feedstock, a by-product of palm oil.

According to Verdezyne Chief Executive Officer E. William Radany, the plant will potentially supply up to 30 percent of global demand for DDDA. Global demand is about 45.4 million kilograms per year. Although the location for the plant is still under evaluation, Verdezyne said construction should take about 18 months.