Nov 4 2010
Cereplast, Inc. (NASDAQ: CERP), a leading manufacturer of proprietary bio-based, compostable and sustainable plastics, announced today that demand in Europe for Cereplast bioplastic resin continues to soar as a result of Italian legislation banning the sale of plastic bags.
European manufacturers are increasingly seeking out plastic alternatives, including bioplastic blown film, to prepare for and comply with the legislation that goes in to effect in January 2011.
Cereplast announced earlier this year that it entered into a multi-million dollar agreement with RI.ME. Masterbatch (RI.ME.), a leading European supplier of colorized resin used in the manufacturing of plastics. Under the terms of the contract, Cereplast supplies its Compostable 3000 film grade for use in RI.ME.'s masterbatching processes for the production of items such as carry out bags and compostable trash bags. Since September 2010, Cereplast has shipped approximately 200 tons of blown film resin to RI.ME. each month to support customer demand for an alternative to petroleum-based plastics. RI.ME. increased their initial monthly order in November and Cereplast expects shipments will double by the end of the year, reaching approximately 1,000 tons per month by the second quarter of 2011.
“The movement to ban the use of petroleum-based plastic bags across the globe is beginning to have a strong impact on the growth of the bioplastics industry and, thereby, boosting demand for Cereplast resin in Europe,” said Frederic Scheer, CEO and Chairman of Cereplast. "With over 60 to 100 million barrels of oil used each year for the manufacturing of plastic bags, European countries are passing legislation aimed at reducing the use of oil in the production process as an effort to preserve and protect the environment."
Scheer continued, “With the opening of our Seymour plant earlier this year, we have increased our manufacturing capacity and efficiency and are confident we can support the growth we anticipate for the remainder of this year and into 2011. Based on our current shipments, we are reiterating our revenue guidance of between $8 to $10 million for the 2010 fiscal year.”