MILAN (Reuters) - Russian petrochemical group TAIF JSC plans to produce bioplastic based on technology licensed by Italy’s Bio-on, they said in a joint statement on Monday, boosting shares in the Italian company.
Shares in beleaguered Bio-on leapt more than 20% to 20.90 euros, recovering some of the ground lost after recent allegations of accounting irregularities.
TAIF aims to begin production in 2021, Monday’s announcement said, after the construction of a plant able to produce 10,000 tonnes a year of the environment-friendly plastic.
The Russian group has obtained the construction authorisation to build the new plant, the companies said.
Bio-on shares had plunged 73% in two days at the end of July after U.S. hedge fund Quintessential Capital Management called Bio-on “a massive bubble based on flawed technology and fictitious sales”.
The Italian company says it has developed a process for the production of biodegradable plastic from agricultural waste. It has repeatedly denied the Quintessential accusations and also filed a legal complaint against the hedge fund.
Italian prosecutors have opened an investigation into possible market manipulation, a judicial source said on July 26.
Reporting by Francesca Landini; Editing by David Goodman