Avantium has completed the spin-out of its Parana Technology business into an independent company, Parana Materials, as the Dutch renewable materials company sharpens its focus on its core FDCA and PEF businesses.
Based at Brightlands Chemelot Campus in Geleen, the Netherlands, Parana Materials will develop and commercialize plant-based, high-performance polyesters including PISOX, PISA, PEIT and PEIF.
The transaction transfers Parana Technology’s intellectual property, know-how, projects and dedicated team to the new company. Avantium will retain a minority stake in Parana Materials, giving it continued exposure to the technology while allowing the business to pursue an independent growth strategy.
"Parana Materials starts with a clear mission: to turn a distinct portfolio of plant-based polyester technologies into practical solutions for customers.
"Operating as an independent company gives us the focus and agility to develop PISOX, PISA PEIT and PEIF together with partners, using production routes designed to fit existing industrial infrastructure. We look forward to building the company and translating customer interest into concrete applications," said Gert-Jan Gruter, Chief Technology Officer and founder, Parana Materials.
Parana Technology is designed to produce renewable polyesters through simpler synthesis routes using commercially available monomers, including isosorbide, succinic acid, oxalic acid and bio-MEG. The materials can also be produced using existing industrial assets, potentially reducing the need for new manufacturing infrastructure.
The portfolio includes oxalic acid-based PISOX polyesters, which Avantium says offer marine degradability and the potential for a carbon-negative footprint. PISA, PEIT and PEIF are positioned for applications spanning packaging, consumer goods and specialty materials.
The technology has attracted interest from global consumer brands and materials companies, according to Avantium.
"Parana Materials combines innovative technology with strong international growth potential. Our investment supports its technical and commercial development while strengthening Limburg’s biobased materials cluster. Its presence at Brightlands Chemelot Campus creates new opportunities for collaboration and innovation, helping build lasting economic value for the region," said Jeffrey Lutje Spelberg, investment manager, LIOF.
Parana Materials will be led by Willem-Jan Meijer, who brings more than a decade of experience in strategy, licensing, business development and commercialization of sustainable technologies, including senior positions at Avantium and dab.bio.
Gruter, the inventor of the Parana Technology and Avantium’s current Chief Technology Officer, will move to Parana Materials as its CTO following completion of the transaction.
The company will also take over operation of Avantium’s polymerization pilot plant under a lease arrangement. The facility will support technology development, scale-up and customer applications, as well as third-party tolling. Avantium will retain ownership of the unit and access to its polymerization capabilities.
Parana Materials has secured financial backing from LIOF Participatiefonds and its founders, alongside support through the Netherlands’ Just Transition Fund and Demonstration Energy and Climate Innovation (DEI+) programmes.
For Avantium, the spin-out is intended to free resources for its FDCA and PEF business, including commercialization of its YXY technology and execution of its licensing strategy.
"The completion of the Parana spin-out is another important step in the execution of our strategy. By creating an independent company with dedicated leadership, funding and development resources, we believe Parana Materials is well positioned to advance its promising polyester technology platform.
"At the same time, the transaction enables Avantium to sharpen its focus on the commercialization of FDCA and PEF and the execution of our licensing strategy. Through our shareholding in Parana Materials, we retain exposure to the future value creation potential of the technology while allowing the business to pursue its own growth trajectory," said Tom van Aken, Chief Executive Officer, Avantium.
With the spin-out now complete, Parana Materials enters its next phase as a standalone renewable materials company, while Avantium concentrates its resources on bringing its FDCA and PEF platform to commercial scale.
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