Cardia Bioplastics and Wesco China announce exclusive distributorship for Cardias next generation plastics in China

Extends Cardias global distributor roll-out Melbourne, Australia, 10 March 2011: Cardia Bioplastics Limited (Cardia) has announced the appointment of Chinas leading plastics distribution company Wesco China (Wesco) as its exclusive distributor for China. Wesco is a Joint Venture with Sasol Limited, the leading South African petrochemical company.

Thursday 10 March 2011
 

The exclusive distribution agreement enables Wesco to offer customers the comprehensive range of Cardia Bioplastics sustainable resins to the Chinese packaging and plastic products industries.

China has recently assumed the mantle of world leader in sustainable energy production through investment in hydropower, solar, geothermal and biofuels. Following that success, China is establishing its environmental credentials further in the important area of sustainable plastics. China's demand for environmentally friendly bioplastics, which are plastics that are biodegradable or derived from renewable resources, is rapidly developing.

The extraordinary growth is fueled by a number of factors, including China's demand for more environmentally sustainable products, the development of bio-based feedstock for commodity plastic resins, and increasing restrictions on the use of oil derived plastic products.

Cardia Bioplastics is a global provider of bioplastics through its purpose built manufacturing operations in Nanjing, China.

Wesco China Managing Director Miguel Chang said one of the most important demand drivers in China for this ‘next generation' of plastics, would be the expected continuation of high crude oil and natural gas prices, which even at current levels allow Cardia Bioplastics to become cost-competitive with traditional petroleum-based resins.

Cardia's novel resins also provide a better carbon footprint and environmental performance; these are issues of key concerns today in China.

Mr Chang said the Cardia Bioplastics range would provide renewable resource based polymer choices for his broad range of customers. "Cardia Bioplastics is a natural selection for Wesco because their products offer the market technical excellence, a global track record and choice across a range of applications," he said.

"Wesco has a commitment to growing its sustainable product range. With the Cardia portfolio, we will service the Chinese packaging industry with a comprehensive portfolio of resins that are proven with global packaging leaders. "They can be processed using existing equipment for film blowing, extrusion and injection moulding." 

Mr Chang said that as the demand for environmentally friendly product solutions grows in China, his company had looked for a leading bioplastics supplier with a full portfolio of sustainable options. "The sustainable BiohybridTM products allow customers to reduce the carbon footprint and oil dependence of their packaging," he said.  It is expected that the growth in the China sustainable packaging and plastics products markets will be significantly fuelled by export demand as well as Chinese consumers, retailers and brand owners who insist on packaging with a reduced carbon footprint and with environmental benefits.

Cardia Bioplastics Managing Director Dr Frank Glatz said the Wesco China agreement further extended the company's global distributor roll out.

"We are delighted to have this partnership with Wesco China, a highly reputed and leading packaging and plastics products distributor in the very large Chinese market."

Dr Glatz said the oil price peak is a strong driver in the move away from fossil based resins in China. "As global demand for finite oil resources grows, brand owners and retailers want new cost effective packaging options that also meet the environmental demands of regulators and consumers," he said.

"Packaging and plastics businesses know that eventually higher petroleum prices will erode their competitiveness and their profit margins, and they want packaging and bioplastics products solutions based on sustainable resources."

Cardia Bioplastics and Wesco are benefiting from the trend towards sustainable packaging with products used in a broad range of packaging applications.

Cardia BiohybridTM proprietary technology combines renewable thermoplastics with polyolefin material to reduce dependence on finite oil resources and to reduce carbon footprint. Cardia Compostable resins are high performance packaging materials certified to international compostable packaging standards like USA ASTM 6400 and Europe's EN13432:2000.

About Cardia Bioplastics

Cardia Bioplastics Limited (ASX CODE: CNN), through its 100% owned subsidiary Cardia Bioplastics (Australia) Pty Ltd, develops, manufactures and markets sustainable resins and finished products derived from renewable resources for the global packaging and plastic products industries. The company holds a strong patent portfolio and its growth is fuelled by the global trend towards sustainable packaging. Established in Australia in 2002 as Biograde, the company Headquarters and Global Applications Development Centre is in Melbourne, Australia. The Product Development Centre and manufacturing plant is in Nanjing, China. There are Cardia Bioplastics offices in the Americas, Europe, Malaysia and China, and a network of leading distributors across Australia, the Americas, Asia and Europe.  Visit www.cardiabioplastics.com 

About Wesco China

Wesco is a leading distributor of polymer products in China, Hong Kong and Taiwan. It is a Joint Venture with Sasol Limited, the leading South African petrochemical company. Wesco's head office is based in Hong Kong.  It has sales offices throughout Southern and Eastern China. It has warehousing and distribution centers in both Guangdong and Zhejiang provinces. Wesco currently handles more than 250,000 metric tons of polymer a year and employees around 300 people. Wesco has a high reputation, strong technical expertise and sales resources in the Chinese market place.

Further information:

Dr Frank Glatz    

Managing Director              

Cardia Bioplastics                           

+61 400 930 530