EcoSynthetix wins two new lines with existing accounts

New line wins

EcoSynthetix has secured orders to supply biopolymers to two new production lines at existing customers: SurfLock strength aids for a tissue line and EcoSphere biolatex for a coated paper line. The tissue account already uses SurfLock at a separate facility and the company has worked with that customer for more than a year. The coated paper account is a large paper and packaging manufacturer that uses EcoSphere on a different paperboard line and the supplier has supported that account for multiple years.

Revenue implications

A typical tissue line represents up to $250,000 per annum, while a typical packaging or paper line represents $0.5 million to $3 million per annum. Management states that existing commercial relationships alone represent an addressable market in the hundreds of millions in topline revenue.

Market outlook and strategy

Management emphasises expanding within existing accounts as a core commercial strategy because industrial change involves replacing entrenched, long-used technologies. The SurfLock pipeline of opportunities is reported to be building across existing accounts and new prospects. The company also notes that demand in the graphic paper end market is diminished by macro headwinds, though EcoSphere remains in use where manufacturers continue to supply that market.