Cereplast, a producer of proprietary compostable, sustainable and bio-based plastics, has completed the acquisition of a production plant located in Assisi (Cannara), Italy. The company will use the facility for the production and supply of its bio-based plastics to the European region.
According to Cereplast, the total estimated cost of the acquisition and renovation of the Assisi facility will be roughly €12 million of which a major share will be offered by the Italian bank, Monte De Paschi di Sienna. IntesaSanPaolo Bank in support with Eurofidi took part in the opening credit facilities having a total value more than €1 million. Local government agencies will subsidize the rest of the project with grants and loans.
Cereplast plans to construct a factory measuring 125,000 sq ft with a capacity of nearly 100,000 t, which will be finished in two phases. In the first phase, a plant with a 50,000 t capacity will be built with production anticipated to start by the fourth quarter of 2012. The completion of the second phase will depend on the market demand. As the new plant will be developed on the location of an older factory, the company anticipates more benefits from the existing infrastructure, which includes its chemical site permit.
The Chairman and Chief Executive Officer at Cereplast, Frederic Scheer commented that the new facility reinforces the company’s potential to fulfill the growing demand for bioplastics in the European region, which is anticipated to achieve one million tons in 2014, according to European Plastics, signifying an annual growth rate of roughly 33%. The company’s production capacity will be drastically increased from 36,000 to 86,000 t following the conclusion of the first phase, which will allow the company to meet the burgeoning count of supply deals, he added.