Cereplast announced today that is planning to build a bioplastic manufacturing plant in Assisi (Cannara), Italy. The plant will be owned and operated by Cereplast Italia SPA and will be financed through local and regional financing/subsidies with Italian institutions from various state and local agencies. Initial investment is expected around EUR10m-EUR12m ($14.8m-$17.8m).
Cereplast CEO Frederic Scheer said 85% of their business is now based in Europe. He noted that the bioplastic market in the region is expected to reach 1m tons by 2014 as reported by the European Plastics trade organization.
“We believe this new plant will create efficiencies, reduce transportation costs and minimize risks in our business. This new manufacturing facility will position Cereplast to effectively serve that expanding market.”
Capacity of the plant is expected at 100,000 tons/year or 220m lbs/year and will be build in several phases. The first phase at 50,000 tons is expected to start in late 2012, the second phase also at 50,000 tons will begin in mid-2013 based on market demand. The plant site, which is said to be a former chemical site, will enable the company to use existing infrastructure.
[Photo by Elsa Wenzel/CNET News.com]