CARDIA BIOPLASTICS SUPPLIES THREE MORE CITY DISTRICTS IN CHINA WITH CARDIA'S RENEWABLE BIOHYBRID KITCHEN WASTE BAGS TO HOUSEHOLDERS
23 January 2012: The Board of Cardia Bioplastics Limited is pleased to announce that it is supplying three more City Districts in China to provide householders with kitchen waste bags made from Cardia renewable Biohybrid™ products that contain less oil and have a lower carbon footprint compared to conventional plastics.
Monday 23 January 2012
Cardia also announced on the 15th of December 2011 that it was awarded the supply contract by the City of Nanjing
The four City Districts now include:
- Shangai Pudong (City District) population of 7m people.
- Hangzhou West Lake (City District) population of 8m people
- Yuhang (City of Yuhang) population of 1m people.
- Nanjing (City of Nanjing) population of 7m people.
The orders are for supplying Cardia BiohybridTM bags for trials in households that are being conducted and will continue over the next six months. The total sales value for the supply of bags for the trials is expected to be in the order of AUD$600,000 over the next 6 months.
If the orders extend beyond the trial period, it could grow to cover a larger radius of householders in each region where the population as shown above combines to a potential market of 23 million people.
If all or some of these trials produce successful results and Cardia BiohybridTM kitchen waste bags are fully adopted by the city districts, then an annual contract would be negotiated. Until then, no long-term commitment can be guaranteed.
Mr. Jackie Chen, Cardia Director and Head of China Operations said he was delighted with the outcome and will continue to work with the Government officials of these City Districts to secure long-term contracts in China.
"The Cardia range of renewable BiohybridTM and certified compostable products also meet the Chinese packaging regulations, enacted in June 2008. Our Nanjing manufacturing business is one of the few Chinese companies awarded with the prestigious China Environmental Label.
This is further validation not just of the rapidly increasing market for bioplastics products, but also of Cardia's excellent Government relationships in China, following from our supplying the 2008 Beijing Olympics, Paralympics and 2010 Shanghai World Expo." Mr Chen said.
The potential to grow sales revenue from this business opportunity in China is high on Cardia's marketing agenda in 2012.
Cardia's renewable BiohybridTM kitchen bag business for the China market is based on Cardia's proprietary BiohybridTM technology using less oil.
Cardia has also a certified compostable offering for its organic waste management business, where trials are underway in Australia, New Zealand, Malaysia, Canada and the UK.
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About Cardia Bioplastics
Cardia Bioplastics Limited (ASX CODE: CNN) develops, manufactures and markets its patented renewable resource based materials and finished products derived from Cardia's proprietary technology 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 for resins and finished goods is in Nanjing, China and soon to manufacture under a joint venture for finished goods in Malaysia. There are Cardia Bioplastics offices in the Americas, Europe and China, and a network of leading distributors across the Americas, Asia and Europe. Visit www.cardiabioplastics.com.
About the technology:
Cardia BiohybridTM proprietary technology combines renewable thermoplastics with polyethylene 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.
Cardia is benefiting from the trend towards sustainable packaging with products used in a broad range of packaging applications, including flexible film, injection moulding, blow moulding, foam, and extrusion and coating applications. It gives customers the choice of using sustainable Cardia BiohybridTM technology (less oil, lower carbon foot print) or Cardia's internationally certified Compostable technology for their packaging or plastic products.
Further information:
| Dr Frank Glatz Managing Director Cardia Bioplastics +61 400 930 530 | Barry Oosthuizen Communication Advisor Cardia Bioplastics +61 413 185 135 |