Shares of Metabolix (MBLX) were down nearly 58% near the end of Friday’s trading, a fresh 52-week low, after the company announcedthat Archer Daniels Midland (ADM) decided to end the two firm’s biodegradable plastics joint venture.
Metabolix shares were halted Thursday but fell roughly 45% after hours: The company also announced it was eliminating 3% of its work force, as it seeks to rein in capex to quell shareholder discontent.
The joint venture, Telles, produces plant-based biodegradable plastics for consumption by clients in the U.S. and Europe looking for more environmentally friendly solutions. ADM said it pulled out of the project because it was unsure about costs, as well as how quickly the market would adopt its solutions.
Metabolix said it would continue to focus on renewable solutions, but is also conducting a strategic review of� business priorities for 2012.
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