Solazyme Inc. (NASDAQ:SZYM) Moves Up Smartly
Solazyme Inc. (NASDAQ:SZYM) skyrocketed to as much as 33% on Friday after it made a press release about the commercial operations being initiated at its Clinton, Iowa plant. Solazyme is a producer of tailored oil climbed the most since its last gain in 2011 as the company disclosed that its Iowa based two plants have started operations.
Commercial Operations Begin From Iowa Plants
In the press release, the South San Francisco, Californis situated company confirmed that they report substantial product shipping from their two Iowa plants.While stressing on the flexibility of the Solazyme’s technology, the company said that the facilities have successfully accomplished the task of manufacturing three unique and distinct tailored oil products, which are being sent across for varied purposes ranging from lubricants, home and personal care to metalworking.In November last year, the company was forced to report delay in its commercial production from Moema plant in Brazil to first quarter. As per the analyst at Cowen & co, Rob Stone, the startup issues have impacted the peers to a large extent, but, the current update of initiated operations will help company positively. He has placed a ‘Buy’ target for it, while the one year price target for it is kept as $14.
Moreover, the company said that the current rate of production at its two facilities, Galva and Clinton, Iowa, is projected to increase yearly to 20,000 metric tons within a span of next 12-18 months. The company is targeting to expand its capacity to as much as 100,000 metric tons in the forthcoming year.
About Solazyme Inc.
Solazyme is a producer of Renewable™oil and is also a bio-products company. It is engaged in production of a variety of high-valued oils derived by converting cheap cost plant-based sugars into high-value oils. Its Renewable products can either enhance or substitute oils derived from the world’s three accessible perishable sources, namely, plants and animal fats and petroleum.