Metabolix Inc. Q2 2009 Earnings Call Transcript

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2009-07-29 17:09:18.0

Tags: Facility, U.S. Bancorp Piper Jaffray Inc., Call Transcript, Earnings, Question, Metabolix Inc., Clinton, Financial Accounting, Team Management, Finance, Management, Seeking Alpha

Question-and-Answer Session

Operator

Thank you. (Operator Instructions) Our first question will come from Michael Cox with Piper Jaffray.

Michael Cox – Piper Jaffray

Good afternoon guys. Thanks for taking my questions. My first question is on the Clinton facility. A couple of quarters ago you had talked about looking at the Clinton Two, the expansion of the original facility and understanding the delay has probably been a bit of a distraction, but I’d be curious as to what your thoughts are on the planning for expanding that facility given the strength and customer demands?

Richard Eno

Good question. You’re exactly right, we did talk about that and with the delay obviously we have to wait a bit before we can be more concrete about that. One of the key things to look at is that as that plan starts up, we’ll start to think about the technical changes in improvements, which are natural in processes of these types, which we’d like to put into Clinton Two and beyond.

We do have a technical team, which consists of both Metabolix and ADM employees looking at technical options that we have learned, and things we’ve developed over the last couple of years that we are thinking about a plan to Clinton Two and beyond. That work is ongoing now and actively being pursued.

Once the plan starts-up we’ll look at customer adoption, we’ll begin to look at market demand and I would guess sometime thereafter we’d be able to update you all on specific timing, but technical work is continuing right now and market adoption will really dictate the pace of the timing, but I’d expect that we are going to proceed ahead and we are thinking about it as soon as this plant starts-up.

Michael Cox – Piper Jaffray

That’s great. My second question is on your general expectation for volumes in year one at the Clinton One facility, understanding that there’s a normal ramp up period and that you’ll be making a variety of different types of products. So I was just curious what your thoughts are on year one volumes?

Joseph Hill

Michael, we’re not providing a lot of specific guidance at this point. We are looking at our two year out indicative demand, gives our investors the sense that what’s out there that we are working on and once we get up and running, we’ll be able to be much more definitive about the specific ramp up rates and some expectations there.

 

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