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CSM, the parent company of Purac, has been renamed Corbion, marking the latest stage of the ongoing transformation of the company into a leading provider of biobased products, with activities in biobased food ingredients and biochemicals.
The company is on track to complete the earlier announced divestment of its Bakery Supplies business to Rhône Capital early Q3 2013. Built on the strong foundations of Caravan Ingredients and Purac, Corbion has a wealth of expertise in the world of biobased food ingredients and biochemicals, combined with a rich history of service and innovations spanning more than a century.
In biochemicals, Corbion is a fast-growing, innovative supplier of fermentation-derived, sustainably sourced biochemicals. Corbion's aim is to replace fossil-based chemicals in selected markets by offering products with similar or improved functionality, lower cost-in-use, and enhanced environmental credentials. Accelerating growth in biochemicals will be underpinned by investments in innovation and developing partnerships. Corbion has already reached a number of key milestones, such as the recently announced partnerships with BASF and Cargill.
Average organic sales growth for Corbion is targeted at 6-9% CAGR. Within that, average organic sales growth for the Biobased Food Ingredients division is targeted at 3-5%, with a target of 15- 20% for Biochemicals. The Biochemicals sales growth is expected to step up towards the end of the period, as lactide sales (mostly related to bioplastics) are expected to increase, and the new CSM biobased molecule platforms start to generate initial revenues.
Corbion's EBITDA margin is targeted to exceed 15% by 2016, reflecting growth and efficiency initiatives. Investments in long-term innovation, the supply chain and market access will increase significantly in the coming years. In particular, there will be sizable investments in lactic acid capacity expansion in 2014-2015, which will drive further growth of Corbion.