Jun 10 2010
Cereplast, Inc. (NASDAQ: CERP) a leading manufacturer of proprietary bio-based, sustainable plastics, announced today that it expects to produce and ship approximately 16 million pounds of their proprietary bio-plastic resins to customers in 2010, representing a 400% increase in shipments compared to 2009.
Cereplast recently entered into new global distribution agreements with a number of companies, including multi-billion dollar corporations Ashland Distribution, a commercial unit of Ashland Inc. (NYSE: ASH) and Bunge Alimentaris, a Brazilian subsidiary of Bunge Limited, a contributing factor to the rise in shipment estimates. To support growing sales volume, the Company recently opened a new state-of-the-art production facility in Seymour, Indiana. The move to the new plant, which was relocated from Southern California, also has significantly reduced real estate and utility costs for the company.
“Distributors are increasingly utilizing bio-plastics as an alternative to petroleum-sourced materials in order to meet growing consumer and industrial demand for economically and ecologically sound, 'green' products,” said Frederic Scheer, Chairman and CEO of Cereplast, Inc. “Our new advanced facility provides us with the capacity and scalability to handle climbing volume. We estimate that this facility, running at full capacity, will be able to produce approximately 80 million pounds of bioplastic resin per year.”
Mr. Scheer added, “We estimate that the expected rise in volume will result in our 2010 revenues increasing by a minimum of 190 percent. The bulk of the shipments are expected to be delivered in the third and fourth quarter."