Bioplastics in China

Interesting that after my post late last week regarding DNP’s bio-succinic acid ventures in Asia, Cereplast announced today their bioplastic distribution deal with Chinese plastic company Vulcan Plastics Technology Co. Ltd. (the company is based in Hongkong under the name S&P Sourcing Co. Ltd).

Under the deal, Vulcan will distribute Cereplast’s Compostables and Hybrids resins to converters and manufacturers in Guangdong and Fujian provinces, which are said to be one of the largest industrial plastic manufacturing centers in China.

In the press release, Cereplast noted that China’s domestic plastic consumption is expected to reach 38.8m tonnes/year by 2012.

The question here is whether Chinese consumers are ready to pay premium for bioplastic products or will these end-products manufactured in China will be shipped back to US and Europe? That could screw up the whole carbon footprint picture (think about transportation emissions…).

Of course there are other Asian countries such as Japan and even Singapore who will not qualm as much on costs for premium-priced environment-friendly products. As DNP noted in my previous bio-succinic acid post, Japan is a potential big market for bio-based chemicals.

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