Renewable polymers company Draths Corp. has a new owner that plans to move the company out of its current locations in Michigan.
Draths executives said Oct. 20 that confidentiality agreements do not permit them to disclose the name of the company's new owner.
But the plan is to close down the current 30,000-square-foot plant in Delhi Township that the company moved into just one year ago, lay off most of the company's 40 workers, and move the headquarters out of Lansing.
“The upside of the acquisition is that the development and commercialization of our technology will be accelerated by a company with substantially greater resources, so our products will likely reach commercial scale sooner than they would have with the resources we could afford to invest ourselves,” said Allen Julian, Draths business development director.
“Clearly the ‘bad news' is that the location in Michigan will be closed, with many resulting layoffs,” he said.
The Lansing State Journal reported that all but two of the company's workers would be laid off, and that the company's top executive, Dex Brown, would not be staying.
Draths makes bio-based purified terephthalic acid, using synthetic biology and a fermentation process to make muconic acid as the building block for its bio-based PTA.