Sojitz Corporation and Ginkgo Bioworks Announce Plans to Use Synthetic Biology R&D Services to Accelerate Sustainable Manufacturing in Japan

Rhea-AI Summary

Sojitz, a prominent Japanese trading company, and Ginkgo Bioworks (NYSE: DNA), known for its cell programming and biosecurity platform, have entered into a binding definitive agreement to promote synthetic biology in Japan.

This collaboration aims to foster connections with key Japanese businesses to encourage sustainable production processes. Sojitz will leverage its extensive network within the Japanese bioeconomy to offer Ginkgo’s R&D services. The Japanese government has set an ambitious goal of achieving a $837 billion bioeconomy by 2050 as part of its climate commitments.

Ginkgo’s technology aims to replace petroleum and chemical-based manufacturing with bio-based alternatives. An upcoming presentation by Ginkgo’s co-founder, Tom Knight, will further detail this partnership at the SusHi Tech Tokyo 2024 conference on May 15th.

Positive

• Definitive agreement between Sojitz and Ginkgo Bioworks to promote synthetic biology in Japan.
• Leveraging Sojitz's extensive network within the Japanese bioeconomy.
• Japanese government's $837 billion bioeconomy strategy aiming for net-zero by 2050.
• Collaboration aims to replace petroleum and chemical-based manufacturing with bio-based alternatives.
• Introduction of Ginkgo's technology to Japanese companies seeking sustainable fermentation processes.
• Potential for Ginkgo to accelerate the development and launch of bio-based products in Japan.

Negative

• No immediate financial impact disclosed.
• Dependence on successful integration and acceptance of Ginkgo’s technology by Japanese companies.
• Potential challenges in achieving the ambitious $837 billion bioeconomy goal by 2050.

Insights

Market Research Analyst

The collaboration between Sojitz Corporation and Ginkgo Bioworks represents a strategic alliance aimed at leveraging synthetic biology to foster sustainable manufacturing in Japan. This is particularly significant given Japan's ambitious Bioeconomy Strategy targeting a $837 billion bioeconomy by 2050. The Japanese market offers a lucrative opportunity for bio-based solutions and this partnership positions both companies to capitalize on this growing sector.

Market Impact: The Japanese government's strong support for biotechnology and sustainable practices creates a fertile environment for this collaboration. This partnership could catalyze broad adoption of bio-based manufacturing processes across industries, reducing reliance on traditional petroleum and chemical-based methods. For investors, the collaboration might indicate potential growth in revenue streams for Ginkgo Bioworks from the Japanese market, enhancing its market share in the bioeconomy sector.

Short-Term vs. Long-Term: In the short term, investors should watch for initial partnerships and contracts with Japanese companies, as these will serve as indicators of the collaboration's immediate success. Over the long term, the realization of Japan's bioeconomy vision by 2050 could result in sustained demand for Ginkgo's services, potentially driving long-term revenue growth and stock appreciation.

Risks: However, investors should remain cognizant of potential risks, such as regulatory challenges, market competition and the effectiveness of technology integration within Japanese industries.

Environmental Analyst

From an environmental perspective, the collaboration aims to address critical sustainability issues. By replacing petroleum and chemical-based manufacturing processes with bio-based alternatives, the partnership supports Japan's net zero emissions goal by 2050. Synthetic biology can play a pivotal role in reducing industrial carbon footprints, thus contributing significantly to climate change mitigation efforts.

Sustainability Goals: This partnership aligns well with global sustainability trends and the increasing regulatory pressures on companies to adopt greener practices. The ability to develop sustainable fermentation processes could appeal to a wide range of industries, from pharmaceuticals to agriculture, enhancing overall environmental impact through reduced greenhouse gas emissions.

Investor Insights: Investors interested in ESG (Environmental, Social and Governance) criteria should find this partnership particularly appealing. It highlights both companies' commitment to sustainability, which can enhance their reputations and potentially attract ESG-focused investors. Additionally, successful implementation of bio-based processes may lead to operational efficiencies and cost savings over time, benefiting the bottom line.

Challenges: Nonetheless, the adoption of new technologies always comes with challenges, including scalability issues and the need for technological adaptation within traditional industrial processes.

Sojitz intends to use its extensive network to help Ginkgo foster business connections within the Japanese bioeconomy

TOKYO and BOSTON, May 14, 2024 /PRNewswire/ -- Sojitz, a large Japanese general trading company with extensive networks within the Japanese bioeconomy, and Ginkgo Bioworks (NYSE: DNA), which is building the leading platform for cell programming and biosecurity, today announced that they have entered into a binding definitive agreement. Together, Sojitz and Ginkgo aim to build connections with key Japanese businesses and encourage the use of synthetic biology to develop sustainable production processes.

Sojitz Corporation and Ginkgo will collaborate in a joint business development effort to offer Ginkgo's R&D services to Japanese customers. Sojitz believes Ginkgo's unique synthetic biology research and development services will appeal to customers within the Japanese bioeconomy that are looking to replace petroleum and chemical-based manufacturing processes with bio-based ones.

The Japanese government has formulated a Bioeconomy Strategy that envisions a $837 billion (USD) bioeconomy, and is looking to develop biotechnology applications across industries as it pursues its climate commitments to reach net zero by 2050. Ginkgo hopes to apply its platform in support of the Japanese biotech ecosystem to accelerate progress to achieving this vision.

Koji Izutani, Managing Executive Officer, Sojitz: "We are pleased to introduce Ginkgo's technology to Japanese companies that have a desire to reduce their carbon footprint and develop sustainable fermentation processes. We are confident that Ginkgo's expertise in synthetic biology and the breadth of its technology platform can be used to transform processes across various Japanese industries, including industrial biotechnology."

Ena Cratsenburg, Chief Business Officer, Ginkgo: "We're thrilled to join efforts with Sojitz and collaborate on bolstering the Japanese bioeconomy. Sojitz is a well respected trading company that has extensive relationships with many of the major industrial and chemical companies in Japan. We look forward to working with Japanese companies to leverage our synthetic biology platform to accelerate the development and launch of bio-based and sustainable products in Japan."

Ginkgo's co-founder, Tom Knight, will present at the SusHi Tech Tokyo 2024 conference on May 15th at 12pm Japan Standard Time, where he will further discuss the collaboration with Sojitz.

About Ginkgo Bioworks

Ginkgo Bioworks is the leading horizontal platform for cell programming, providing flexible, end-to-end services that solve challenges for organizations across diverse markets, from food and agriculture to pharmaceuticals to industrial and specialty chemicals. Ginkgo Biosecurity is building and deploying the next-generation infrastructure and technologies that global leaders need to predict, detect, and respond to a wide variety of biological threats. For more information, visit ginkgobioworks.com and ginkgobiosecurity.com, read our blog, or follow us on social media channels such as X (@Ginkgo and @Ginkgo_Biosec), Instagram (@GinkgoBioworks), Threads (@GinkgoBioworks), or LinkedIn.

About Sojitz
Sojitz Corporation was formed out of the union of Nichimen Corporation and Nissho Iwai Corporation, both companies that boast incredibly long histories. For more than 160 years, our business has helped support the development of countless countries and regions. Today, the Sojitz Group consists of approximately 400 subsidiaries and affiliates located in Japan and throughout the world, developing wide-ranging general trading company operations in a multitude of countries and regions.

GINKGO BIOWORKS INVESTOR CONTACT:
investors@ginkgobioworks.com

GINKGO BIOWORKS MEDIA CONTACT:
press@ginkgobioworks.com

SOJITZ CONTACT:
Sojitz Corporation Public Relations Dept.
hodo@sojitz.com
Website, https://www.sojitz.com/en/

Forward-Looking Statements of Ginkgo Bioworks

This press release contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding the capabilities and potential success of the partnership and Ginkgo's cell programming platform. These forward-looking statements generally are identified by the words "believe," "can," "project," "potential," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) volatility in the price of Ginkgo's securities due to a variety of factors, including changes in the competitive and highly regulated industries in which Ginkgo operates and plans to operate, variations in performance across competitors, and changes in laws and regulations affecting Ginkgo's business, (ii) the ability to implement business plans, forecasts, and other expectations, and to identify and realize additional business opportunities, (iii) the risk of downturns in demand for products using synthetic biology, (iv) the uncertainty regarding the demand for passive monitoring programs and biosecurity services, (v) changes to the biosecurity industry, including due to advancements in technology, emerging competition and evolution in industry demands, standards and regulations, (vi) the outcome of any pending or potential legal proceedings against Ginkgo, (vii) our ability to realize the expected benefits from and the success of our Foundry platform programs, (viii) our ability to successfully develop engineered cells, bioprocesses, data packages or other deliverables, and (ix) the product development or commercialization success of our customers. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the "Risk Factors" section of Ginkgo's quarterly report on Form 10-Q filed with the U.S. Securities and Exchange Commission (the "SEC") on May 9, 2024 and other documents filed by Ginkgo from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Ginkgo assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Ginkgo does not give any assurance that it will achieve its expectations.

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SOURCE Ginkgo Bioworks

FAQ

What is the main goal of the Sojitz and Ginkgo Bioworks agreement?

The main goal is to promote synthetic biology in Japan to develop sustainable production processes.

What is the expected impact of the Sojitz and Ginkgo Bioworks collaboration?

The collaboration aims to foster connections and encourage the use of Ginkgo’s synthetic biology R&D services to replace petroleum and chemical-based manufacturing with bio-based alternatives in Japan.

What is the significance of Japan's $837 billion bioeconomy strategy?

Japan's $837 billion bioeconomy strategy is part of its climate commitments to reach net-zero by 2050, aiming to develop biotechnology applications across industries.

What role will Sojitz play in the collaboration with Ginkgo Bioworks?

Sojitz will leverage its extensive network within the Japanese bioeconomy to foster business connections and introduce Ginkgo's synthetic biology technology to Japanese companies.

When and where will Ginkgo's co-founder present further details about the collaboration?

Ginkgo's co-founder, Tom Knight, will present further details about the collaboration at the SusHi Tech Tokyo 2024 conference on May 15th at 12pm Japan Standard Time.