2014-2015 Exhibitions
US-based manufacturer of proprietary biobased, compostable and sustainable bioplastics Cereplast has filed voluntary petition for relief under Chapter 11 of the US Bankruptcy and is restrategising its operations toward traditional compounded products and recycling polyolefin and bioplastic made of diversified feedstock including algae and polylactic acid.
The company says it has taken this action to strengthen its balance sheet, clean up its capitalisation structure and gain financial flexibility as it continues to realign its operations. It intends to continue to operate during the reorganisation process, which includes aligning its cost structure with the realities of market demand.
CEO Frederic Scheer said the company had taken a number of steps to improve its operations over the past few months, adding that it was making great progress. He went on to say, “However, the lack of traction of bioplastics demand in the US, the repetitive delays in implementation of the bioplastic regulation in Europe and especially in Italy combined with the legal problems created by several of our lenders made clear to our Board that reorganisation was the proper path forward. We believe that this reorganisation will enable us to reduce our debt and implement operational changes, while maintaining our commitment to the environment."
Cardia expands
Meanwhile in Australia, Cardia Bioplastics, the supplier of Cardia Biohybrid and Cardia Compostable resins, films, bags and custom finished products is expanding production to meet increasing demand for its film and bag products.
It has added on three new film extrusion and bag making machines with aim to order a further three by end of June quarter. Each production line is capable of producing an additional 1.5 million bags/month. It says that increased finished products capacity will enhance sales margins, as Cardia products will be made in-house while the existing capacity for resin production meets business requirements.
An early entry into the bioplastics sector, Cardia Bioplastics proprietary technology has focused on developing high quality fully certified Compostable and Biohybrid films, bags and products at a competitive price point.
Growth in finished products is being driven by a number of factors, including a price competitive quality product, changing legislation and increased global consumer demand for quality sustainable bags, films and other packaging. Cardia’s strategy to focus on finished products is yielding favourable results with early signs that revenues will continue to grow in this division.
Dr. Frank Glatz Cardia’s Managing Director said, “The market dynamics are shifting. Over the past few years brand owners, retailers and packaging companies have commenced using bioplastic resins, films and packaging to replace conventional plastics. In parallel, Councils and waste management companies have started programmes to separate organics from landfill, using compostable bags to divert organic waste from households and industry to composting. Both developments offer growth opportunities for the Cardia Bioplastics business.”
Richard Tegoni Cardia’s Chairman stated, “These are exciting times for Cardia Bioplastics. By focusing on finished products sales we stand to generate strong revenue streams. With orders flowing in from major international companies, well known brand names, Councils and Governments around the globe, Cardia is reaping the results of years of developing innovative solutions, as well as technological and product refinement to deliver high quality products at competitive prices.”
(PRA)
