Cereplast inks bioplastic supply deal for bags in Italy, Slovenia

24 January 2011 16:15  [Source: ICIS news]

HOUSTON (ICIS)--Cereplast signed a distribution agreement with Italy-based ColorTec to supply bioplastic resins to southern Italy and Slovenia, the US firm said on Monday.

“Recent environmental legislation, such as the plastic bag ban that went into effect this year in Italy, is driving demand for bioplastics, which are non-petroleum-based products," said Cereplast CEO Frederic Scheer.

“We are confident that demand will continue to rise in Europe, as stores in Italy alone use approximately 20 [bn]–24bn plastic bags a year, which accounts for one-fifth of all European use,” he continued.

“This is the equivalent of a potential $1bn (€730m) bioplastics market in Italy as plastic bag manufacturers now have to replace traditional plastic with environmentally friendly materials.”

Under the agreement, Cereplast will supply ColorTec with its Compostable 3000 film grade for use in its masterbatch process for the production of shopping and garbage bags.

Financial terms were not disclosed.

ColorTec was described as having a “dominant position” in the southern Italy market.

($1 = €0.73)

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By: Ben DuBose
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