Australian manufacturer of sustainable packaging products and resins, Cardia Bioplastics Limited, (ASX: CNN) has struck a major agreement with a bag manufacturing company based in China - its third such deal in three months.
The new agreement with the unnamed company, remaining anonymous for commercial sensitivity, will ensure that a minimum US$0.8m p.a. of Cardia Bioplastics products purchased by the Chinese bag company. These products will then be exported to the company's local and international client base.
This agreement follows on from a series of deals in China across different market segments recently announced to the ASX, and adds to the Cardia's growing international reputation. In the past quarter, Cardia has announced supply agreements with:
• Ben's Land - A US$1.5m annual agreement for nappy and feminine products
• Beifa Group - An agreement with China's largest pens and stationery supplier to manufacture pens from sustainable resins rather than traditional plastics.
Cardia also recently announced an agreement with Australian owned Nature Organics for the supply of its bioplastics resin technology for "bottles and closures" across a range of products.
Cardia's Chairman Mr. Pat Volpe said the recent deals demonstrated the momentum Cardia was gaining in the international marketplace, and also highlighted its broad product offerings using patented technology surrounding the use of bioplastics and sustainable resins.
He said the bag company was not being named to protect commercial sensitivities.
"These last four agreements cover nappy and feminine hygiene products, pens, bags, bottles and closures," Mr Volpe said.
"This demonstrates the vast potential for sustainable resins. Companies around the world are in need of internationally accredited, quality bioplastics.
"A substantial percentage of the world's plastics products are manufactured in China. The accelerated interest in bioplastics makes it logical that Cardia is receiving a great amount of interest from Chinese companies which have an established portfolio of international clients."
Mr Volpe said this US$0.8m minimum annual order contract was won because Cardia's compostable resins met stringent international compostability standards.
He noted that the range of renewable BiohybridTM and certified compostable resins was also creating "significant" interest in China where the company's manufacturing plant was located, as well as in other countries which are aggressively pursuing greener alternatives.
"Our bioplastics will be used in day to day consumer products including shopping bags but also in other finished consumer products."
"Cardia is working with several other companies at the retail consumer end as well as in new packaging products that are being developed."
"We are well positioned to expand and this supply agreement is further endorsement of that."
Mr Volpe said Cardia was getting close on other development projects, and if these were successfully commercialized, Cardia's sales numbers would "significantly increase".
About Cardia Bioplastics
Cardia Bioplastics Limited (ASX CODE: CNN), through its 100% owned subsidiary Cardia Bioplastics Australia Pty Ltd, develops, manufactures and markets its patented renewable resource based materials and finished products derived from Cardia's proprietary technology for the global packaging and plastic products industries. The company holds a strong patent portfolio and its growth is fuelled by the global trend towards sustainable packaging. Established in Australia in 2002 as Biograde, the company Headquarters and Global Applications Development Centre is in Melbourne, Australia. The Product Development Centre and manufacturing plant is in Nanjing, China. There are Cardia Bioplastics offices in the Americas, Europe and China, and a network of leading distributors across the Americas, Asia and Europe.
Cereplast and Sezersan Enter into Agreement to Bring Bio-Based Twist Film Packaging to the European Marketplace for the First Time
Cereplast, Inc. (NASDAQ: CERP), a leading manufacturer of proprietary bio-based, compostable and sustainable plastics, announced today that it has partnered with Sezersan Ambalaj (Sezersan), a subsidiary of Asc Group in Turkey, to produce bio twist films made from Cereplast Compostables(R) resins. The first-of-its-kind, patented product will serve as wrap packaging for a variety of food products distributed throughout Europe.
The Sezersan bio twist film will be manufactured using Cereplast Compostables(R) 7003 bio resin, designed to provide high strength, toughness and process ability for products. Under the terms of the multi-million dollar agreement, Cereplast will begin monthly shipments of 100 to 150 metric tons of bio resin in December 2010. The new bio twist film has substantial form memory capability (dead-fold behavior) and is heat sealable. The film is also thinner than other twistable product and may be made into opaque or semi-transparent, film-like material. The bio twist film will be used as packaging for a variety of brands in the food industry in Europe.
"We are honored to partner with Sezersan and be the first to market with bio twist films which offer an environmentally sound alternative for their clients' packaging needs," said Frederic Scheer, Founder, Chairman and CEO of Cereplast, Inc. "Companies are increasingly looking at bio-plastics as an alternative to petroleum-sourced plastics in order to meet growing consumer and industrial demand for economically and ecologically sound, 'green' products."
"Cereplast bio resins will help us cater to consumer demand for an environmentally sound substitute for petroleum-based plastic packaging," said Mehmet Asc , President and CEO of Asc Group. "As one of the largest twist film producing companies in Europe, we are committed to listening to the concerns of our clients and to finding ways to improve our product offerings. Cereplast resin allows us to provide an environmentally intelligent alternative to traditional plastic products, helping to make the world a healthier place. We are excited to be the very first to offer this solution in our robust industry."
Cereplast, Inc. is actively producing bioplastic resins for use in products including tableware, cutlery, toys, healthcare and hygiene products, bottles and containers, bags, packaging, gift cards, printed displays, straws, pipes, conduits, and many other applications. This year, Cereplast is on track to ship 16 million pounds of bio-plastic resins to customers around the world, an increase of 400% from last year, in response to surging consumer and industrial demand for economically and ecologically sound, "green" products.
About Cereplast, Inc.
Cereplast, Inc. (NASDAQ: CERP) designs and manufactures proprietary bio-based, sustainable plastics which are used as substitutes for petroleum-based plastics in all major converting processes - such as injection molding, thermoforming, blow molding and extrusions - at a pricing structure that is competitive with petroleum-based plastics. On the cutting-edge of bio-based plastic material development, Cereplast now offers resins to meet a variety of customer demands. Cereplast Compostables(R) Resins are ideally suited for single use applications where high bio-based content and compostability are advantageous, especially in the food service industry. Cereplast Hybrid Resins(R) combine high bio-based content with the durability and endurance of traditional plastic, making them ideal for applications in industries such as automotive, consumer electronics and packaging. Learn more at www.cereplast.com.
At K 2010 in hall 6, booth B66, bioplastics‘specialist FKuR Kunststoff GmbH, Willich, together with Fraunhofer UMSICHT, Oberhausen, will present a broad variety of biodegradable and natural fibre reinforced materials with application specific properties which can enable mass-market penetration.
During the last few months we have concentrated a lot of development work on new formulations for injection moulding and film applications“, says Patrick Zimmermann, Sales Director at FKuR. ”These intelligent and tailor made compound solutions enable our customers to access new applications and markets“, explains Mr. Zimmermann.
The results of these combined research activities are principally new special grades which are based on PLA or cellulose. Besides the already well-established applications in the agricultural and hygienic sectors, it is now possible to produce films for deep freeze and various multilayer applications made from Bio-Flex®.
Also at K 2010, innovations in the area of injection mouldable cellulose acetate compounds will be presented. With the Biograde® product line, FKuR sets new standards within the bioplastics range. Due to excellent heat resistance (with values up to 115 °C) it is now possible to realise applications in consumer electronics and household appliances made from bioplastics.
FKuR Kunststoff GmbH produces and markets special customized biopolymers under the brand names Bio-Flex® (polylactic acid/copolyester compounds), Biograde® (cellulose ester compounds) and Fibrolon® (natural fibre reinforced polymers). The close cooperation of the company with the Fraunhofer Institute UMSICHT ensures outstanding know-how and quality standards.
Leading Australian manufacturer of naturally based health, beauty and household cleaning products, Natures Organics, has selected Cardia Biohybrid™ sustainable packaging technology for its range of laundry and personal care products.
Natures Organics Managing Director Justin Dowel said Natures Organics has a strong track record of using environmentally responsible packaging. "At Natures Organics, our motivation is based on a philosophy of creating environmentally responsible products, of the best quality, at the lowest possible price."
"We were the first in Australia to produce 100% recycled PET bottles for household cleaning products and we use Bioplastics across our Organic Care range," he said.
Cardia BiohybridTM proprietary technology combines renewable thermoplastics with polyolefin material to reduce dependence on finite oil resources and to reduce carbon footprint. "The combination of packaging performance, environmental profile and cost effectiveness made Cardia BiohybridTM technology a natural choice for our packaging," Justin Dowel said.
Cardia Bioplastics Managing Director Dr Frank Glatz said the Natures Organics philosophy and Cardia BiohybridTM packaging technology were aligned. "We conducted a collaborative product development process with the Natures Organics technical team that was rigorous and efficient," he said.
"Using the testing capability of the Melbourne based Cardia Bioplastics Application Development Centre shortened our time to market. We were able to fully apply our global expertise in laundry and body care packaging to the Natures Organics product packaging and fast tracked the project," said Frank Glatz.
Cardia is well positioned to benefit from the trend towards sustainable packaging. It gives customers the choice of using sustainable Cardia BiohybridTM technology (less oil, lower carbon foot print) or Compostable technology offering (certified compostability to international standards) for their packaging or plastic product solutions. The company's materials are suitable for a broad range of packaging applications, including flexible film, injection moulding, blow moulding, foam, extrusion and coating applications.
About Natures Organics
At Natures Organics, our motivation is based on a philosophy of creating environmentally responsible products, of the best quality, at the lowest possible price. Not only to make them more readily affordable to Australian families, but to actually reward and provide incentive for people to do the right thing, in protecting our planet - and make the important shift to more eco-sensitive alternatives. Visit http://www.naturesorganics.com.au/.
About Cardia Bioplastics
Cardia Bioplastics Limited (ASX CODE: CNN), through its 100% owned subsidiary Cardia Bioplastics Australia Pty Ltd, develops, manufactures and markets its patented renewable resource based materials and finished products derived from Cardia's proprietary technology for the global packaging and plastic products industries. The company holds a strong patent portfolio and its growth is fuelled by the global trend towards sustainable packaging. Established in Australia in 2002 as Biograde, the company Headquarters and Global Applications Development Centre is in Melbourne, Australia. The Product Development Centre and manufacturing plant is in Nanjing, China. There are Cardia Bioplastics offices in the Americas, Europe and China, and a network of leading distributors across the Americas, Asia and Europe. Visit http://www.cardiabioplastics.com/ .
NatureWorks LLC, the world's number one bioplastic company, has been in talks with potential partners including PTT Plc to jointly invest in a large-scale bioplastic plant in Thailand worth about $400 million.
The plan could make Thailand the location of the first polylactic acid (PLA) plant in Asia in 2014 and the second globally, says Marc Verbruggen, president and chief executive of the Minnesota-based company.
NatureWorks' PLA plant in Nebraska opened in 2003 as the first of its kind in the world. It doubled its capacity to 150,000 tonnes annually in the middle of last year.
"We are going to make a final decision by the end of this year. It will take two and a half to three years for the construction, so the plant should be operated in late 2013 or early 2014," said Mr Verbruggen.
NatureWorks is currently in the process of selecting the location of the 150,000-tonne facility. Brazil is among the candidates while other potential locations are Thailand, Malaysia and Singapore, he said.
Three basic factors in the final decision are local availability of raw materials including tapioca and sugarcane, markets of the product, and incentive programmes.
"We are not looking at Thailand as the potential location based on the local market only but also the advantages for our product to be easily shipped to North Asian countries such as China, Japan, Korea and Taiwan," Mr Verbruggen said.
Thailand, meanwhile, also has an incentive programme in place for bioplastic investment but the question is "is it good enough", noted Mr Verbruggen.
The company is also looking for potential local partners who have expertise in petroleum-based polymers, he added.
Siriwan Chierapong, executive vice-president for business development and project management of PTT's petrochemical and refining operation, confirmed that the Thai energy giant had discussed a PLA venture with potential investment partners, namely NatureWorks.
A fully integrated PLA complex could costs in a range of $500 to 600 million. The plant is aimed to be operational in 2014, she said.
Netherlands-based Purac, which produces lactic acid (LA) in Thailand, is also among potential partners, she added.
"We have called on the government to give the bioplastic industry a boost by providing the incentives to make Thailand more attractive and establish the integrated production in the country," Ms Siriwan said.
Malaysia and Brazil have incentive programmes because their governments want to draw investments from bioplastic technology owners.
McKinsey & Co said Thailand could become a global leader in bioplastics and bio-based chemicals given the country's cost and geographical advantages.
Thailand has abundant and potentially low-cost sugar and starch-based feedstock and a well-developed chemical industry, said Marco Ziegler, a principal of McKinsey & Co Inc (Japan).
"Compared to other potential 'bio hubs,' Thailand also has privileged geographical access to the Chinese chemical market," he added.
These innovative block copolymers will enhance the thermo-mechanical and physical properties of many biobased polymers like Poly Lactic Acid (PLA), resulting in a wider range of applications opportunities. These copolymers are produced by combining Arkema's organic catalysis ring-opening polymerisation technology with Purac's L- and D-Lactide monomers.
Arkema is known for its expertise in anionic and controlled radical polymerisation technologies. A polymer range based on these technologies is already available on the market under the Nanostrength® brand name. Arkema has developed a new ring-opening polymerisation process based on organic catalysis, thereby enabling full control over the polymer architecture. This process helps produce high purity copolymers from cyclic compounds such as Lactides and lactones, providing environmental benefits due to absence of metal residues.
Purac is well known for its expertise in fermentation of lactic acid and subsequent conversion into high purity and 100% biobased L- and D-Lactides. These monomers are marketed under the brand name PURALACT®. Purac is enabling the growth of the PLA market through partnerships with leading and innovative companies throughout the value-chain.
The combined know-how of Purac and Arkema will allow the development of this new range of high purity functional block copolymers containing PLA segments. This new product improves the specific functional properties, such as thermal resistance and impact strength in various polymers. PLA is a strongly growing biobased thermoplastic polymer which is widely used in packaging, textile and other consumer goods.
Quality and environmental sustainability: these are the key elements of the non-GMO biodegradable and compostable Mater-Bi® packaging for salads, the result of the collaboration between Novamont and Ecor. The experimental project is an absolute first in Italy and the first in Europe to be used for ready-to-serve salad produce of the IV range with Demeter certification, attesting to its biodynamic farming origins.
The idea behind the experimental project was to find packaging for the IV range of products which, besides being suitable to preserve fresh produce and give it a longer shelf-life, is also sustainable, i.e. it limits the environmental impact of the materials used. Added value which becomes a matter of consistency in the case of biological and biodynamic products, which are products obtained by farming that respects the natural rhythms, increases the humus in the soil and gives man a product with high organoleptic and nutritional properties.
Thus the convergence between Ecor, Novamont and biodynamic agricultural company Filogea means that a market sector in constant growth such as that of pre-washed packaged salads can now offer consumers a 100% compostable pack, the non-GMO components of which (coated cardboard and film) are fully compostable. Consumers who choose the biodynamic ready-to-serve salads produced by Filogea in stores specialising in biological products (a list of which is available from www.ecor.it) do not need to be concerned about how to dispose of the pack. Besides using renewable resources and ensuring the optimal conservation of the product, the innovative packaging consisting of cartonboard “spread” with Mater-Bi and packaged with Mater-Bi film can be thrown away along with the kitchen waste.
“Filogea salads will be the first to be distributed with the eco-packaging developed by Novamont” explained Roberto Zanoni, general manager of Ecor NaturaSì, “and this is one of the many projects that the company has undertaken in order to reduce and improve the quality of our packaging. We also plan to extend the scope of this experimental project to provide a sustainable packaging solution for IV range bio products.”
“The use of biodegradable and compostable packaging can be a tool to maximise the recovery of material through composting and recycling, with enormous benefits in terms of environmental sustainability, especially when, as in this case, the product has such a short shelf life. The aim of this project in collaboration with Ecor is to help people choose more conscientious and enlightened lifestyles without forgoing quality”, declared Catia Bastioli, CEO of Novamont.
Mater-Bi®, the bioplastic developed by Novamont, is naturally biodegradable and compostable in accordance with Italian standard UNI EN 13432 and can guarantee the same strength and performance as traditional plastics, but is made of renewable resources of agricultural origin. It reduces greenhouse gas emissions and the consumption of energy and non-renewable resources, thus completing a virtuous circle: the raw materials of agricultural origin return to the earth through processes of biodegradation and composting, without releasing pollutants.
The new application developed by Novamont and Ecor will be unveiled at SANA in Bologna on 9 September 2010, at 11 a.m., at the Ecor stand (Pav. 21, stand B33-C34, Bologna Fiere).
“The ECOmfort Correction roller perfectly exemplifies our ‘Smart by Nature’ philosophy,” says Carolin Wiegand, Pritt International Brand Management Henkel. “We are the first in the world to successfully design a correction roller using a plastic made from renewable plant material. As a company we are dedicated to combining the best possible product quality with responsibility toward people and the environment.”
The Pritt ECOmfort is made with an improved premium correction layer for perfect cover, and the ECOmfort Roller allows users to immediately write over it without smearing. The product’s ergonomic design and comfortable sideways application enhance the user’s experience, and the 8.5 meter (9 yard) roller tape allows for the correction of over 3,400 characters.
“We strive for improving our products every day with new ideas, even when the bar is already very high,” says Peter Rushe, Pritt Product Development Henkel. “The Pritt ECOmfort roller is simply an even better product than it was, and it has a more sustainable casing and retail packaging. It is the first roller of its kind to use the innovative Ingeo bioplastic, and we’re proud to have delivered such a high quality
product that is not just better performing: Like all new products from Henkel it makes a contribution to a sustainable development.”
“Henkel invested time and resources to ensure the new Pritt ECOmfort correction roller reduced non-renewable energy consumption and greenhouse gas emissions,” said Marc Verbruggen, president and chief executive officer, NatureWorks. “They chose what was right to do, not necessarily what was easy to do, and the resulting product and packaging reflect a passion for product innovation in service to both customers and the environment.”
About NatureWorks LLC
NatureWorks LLC is a company dedicated to meeting the world’s needs today without compromising the earth’s ability to meet the needs of tomorrow. NatureWorks LLC is the first company to offer a family of commercially available, low-carbon footprint Ingeo biopolymers derived from 100 percent annually renewable resources with performance and economics that compete with oil-based plastics and fibers. For more information, visit www.natureworksllc.com.
Henkel operates worldwide with leading brands and technologies in three business areas: Laundry & Home Care, Cosmetics/Toiletries and Adhesive Technologies. Founded in 1876, Henkel holds globally leading market positions both in the consumer and industrial businesses with well-known brands such as Persil, Schwarzkopf and Loctite. Henkel employs about 50,000 people and reported sales of 13,573 million euros and adjusted operating profit of 1,364 million euros in fiscal 2009. Henkel’s preferred shares are listed in the German stock index DAX and the company ranks among the Fortune Global 500.
US demand for degradable plastics is set to grow 16.6% per year to 325 million pounds (147.7 million kilos) by 2014, giving the market a value of $380m, according to a new Freedonia report.
Freedonia says that even though degradable plastics have been on the market for decades, growth was limited because of high cost and various performance drawbacks.
Now, interest in ‘environmentally friendly’ products is strong and future opportunities will come from “continued capacity growth, efforts to reduce pollution and US reliance on petroleum products, and consumer demand for sustainable, environmentally packaging and manufactured goods”, says the firm.
PLA and starch-based plastics currently dominate the market and both will continue to experience strong growth. The PLA market is expected to grow 20.5% per annum to 2014, totalling 140 million pounds (63.6 million kilos). The starch-based plastics market will grow 11.2% to 85 million pounds (38.6 million kilos).
However, Freedonia says a relatively new product – polyhydroxyalkanoate (PHA) – will experience rapid growth rates of 103.6%, boosting the market to 35 million pounds (15.9 million kilos) by 2014
“While sales of PHA were negligible in 2009, rapid growth over the next ten years should boost the product up among the leading types of degradable plastics,” says Freedonia. “Growth is predicted on significant capacity increases, competitive pricing and the development of grades capable of replacing polyolefins in higher performance injection moulded articles.”
That's the aim of the U.S. Department of Agriculture's Agricultural Research Service, which is reporting that USDA chemist William J. Orts is working with Lapol LLC, of Santa Barbara, Calif., in an effort to make corn-derived plastics more heat-tolerant.
The team is developing a 90 percent corn-based modifier that is fully biodegradable that can be blended with PLA to make it more heat-tolerant.
The story quotes Randall L. Smith, chief operating officer at Lapol, who says there currently are no commercially available heat-deflection temperature modifiers for PLA.
Smith said ARS and Lapol are seeking a patent for their invention.
The injection molded Earth Cap – a replacement for traditional LDPE caps – also features a biodegradable non-adhesive tamper-evident label and 2-mm foam seal, making the entire cap structure totally biodegradable. The oxo-biodegradable caps have a two-year shelf life and offer the same performance as current versions and are also FDA compliant.
“This is a significant milestone in meeting the sustainability needs of water bottlers throughout the world,” said Sam Noordhoff, vice president of Norland International. “This is an environmentally friendly option that goes far beyond lightweighting and other recycling strategies, offering a truly effective means of reducing the environmental impact of these plastic products.”
The special additive is blended into the LDPE using a unique mixing and drying system. Once disposed of and exposed to UV light, heat, and moisture, the caps first embrittle and then break down into small pieces. Once the molecular weight is reduced sufficiently, the material becomes available for bio-digestion and the broken down matter becomes a food source for bacteria or microbial activity. Depending on environmental conditions, the plastic cap is expected to totally degrade in about 5 to 10 years.
The proprietary additive greatly enhances degradability of the caps while maintaining clarity and tensile strength. Caps that contain the special additive will degrade in landfills, ditches, rivers, and other water sources. In addition, they are fully recyclable and compatible with municipal collection and recycling systems. There is no contamination with the plastics recycling stream and industrial composting facilities are not required
Norland manufactures these 55-mm caps at virtually the same cost as standard caps. They have drawn worldwide interest and are commercially available in standard colors (earth green, blue, and natural) in the U.S. and Far East/Pacific.
NATIVIA™ is based on NatureWorks® PLA biopolymers, marketed under the brand name Ingeo™, 100% made from renewable resources.
NATIVIA™ is a biodegradable and compostable film complying with the European standard EN13432.
The start-up of the new line took place on August 18th, 2010 and since the following week the commercial production has commenced successfully. The first shipments of NATIVIA™ will be made beginning of September 2010.
Valerio Garzitto, CEO Ti Europe explains "We are particularly proud of the work carried out by our technicians. The BoPLA line was ordered just 5 months ago, and we already obtained an enthusiastic result being able to be on the market now with a film with excellent characteristics."
Brueckner was the main supplier of this new BoPLA line. Mr Karl Zimmermann, Brueckner Sales Director, remarked that "Brueckner had been working hard together with Taghleef technicians to obtain such a valuable and advanced results. This is the proof of the perfect teamwork of two companies whose leading philosophy is innovation combined with development."
Within the next weeks the first productions of 25 and 30-my-thicknesses metallized NATIVIA™ films will take place.
NATIVIA™ films are produced for multiple applications: Food: Fresh Produce, Bakery, Confectionery, Snacks, Dairy/Perishable/Lidding Non food: Labelling and Stationery.