Materials News

Cardia adds on bag supply in Chinese cities

Cardia had announced last year that it was awarded the supply contract by Nanjing. It has now added on Shanghai, Hangzhou and Yuhang to its supply contract.

The orders are for supplying Cardia Biohybrid bags for trials in households that are being conducted and will continue over the next six months. The total sales value for the supply of bags for the trials is expected to be in the order of AUD$600,000 over the next six months.

If the orders extend beyond the trial period, it could grow to cover a larger radius of householders in each region where the population as shown above combines to a potential market of 23 million people.

If all or some of these trials produce successful results and Cardia Biohybrid kitchen waste bags are fully adopted by the city districts, then an annual contract would be negotiated. Until then, no long-term commitment can be guaranteed, said the company

The potential to grow sales revenue from this business opportunity in China is high on Cardia's marketing agenda in 2012.

Cardia's renewable Biohybrid kitchen bag business for the China market is based on Cardia's proprietary Biohybrid technology using less oil.

Cardia has also a certified compostable offering for its organic waste management business, where trials are underway in Australia, New Zealand, Malaysia, Canada and the UK.