Aug 25 2011
Cereplast, Inc. (Nasdaq:CERP), a leading manufacturer of proprietary biobased, compostable and sustainable plastics, has entered into a distribution agreement in August 2011 with Mastercolor AB to supply Cereplast bioplastic resins to the Scandinavian market, specifically in Sweden, Denmark and Norway.
"This marks our seventh distribution agreement in Europe since the start of 2011 and reflects our aggressive growth strategy and continued commitment to expanding Cereplast's distribution with local partners throughout the European continent," said Frederic Scheer, Chairman and CEO of Cereplast, Inc. "The surge in demand for bioplastic materials in Europe has been fueled by new governmental policies, which started with restrictions on the use of traditional plastic bags and is now moving toward changes of the legislative landscape in the use of flexible and rigid packaging. European manufacturers are increasingly seeking out plastic alternatives to comply with these new regulations."
Under the terms of the agreement, Mastercolor AB will supply Cereplast Compostables resin to product and package manufacturers in the Scandinavian region, covering countries including Sweden, Denmark and Norway. The contract includes a minimum of four containers of Cereplast resin over the remainder of 2011, a number anticipated to grow in 2012 and beyond. "We are pleased to partner with Cereplast to expand our product offering and provide our clients with the highest quality bioplastic resin as an environmentally friendlier alternative to traditional plastic," said Carl-Johan Levert, CEO of Mastercolor AB. "Demand for biobased materials in the Scandinavian region is growing at a fast pace, and we are now better positioned to serve that market effectively."
According to a study by European Bioplastics, global bioplastics production will surpass the 1 million ton/year mark this year, with production more than doubling from 2010-2015. Mastercolor AB will supply distributors and manufacturers in the Scandinavian market with several grades of Cereplast Compostable resins to replace traditional plastic resin in the manufacturing of products including bags, flexible packaging and in various food service ware applications for rigid applications. All Cereplast Compostable resins are proprietary patented formulations, and include Ingeo PLA.