Bio-based packaging is increasingly being used as a replacement for petroleum-based plastics. Thedemand is being driven by anti-pollution legislation and by demand from environmentally consciousconsumers. Drives by Wal-Mart to make its suppliers follow environmentally friendly practices andcut down on packaging are also having an effect on take up.
As a result packaging suppliers have been introducing various forms of biodegradable resins andplastics made from a variety of plants, in the main corn. Some companies predict that the marketwill grow by about 20 per cent a year, as an alternative to petroleum-based packaging such as thewidely-used polyethylene terephthalate (PET).
In addition to the additional space the company is also nearing completion of its new production line for its proprietary bio-based resins. When finished this will bring the company's total production capacity to 40 million pounds of resin per year. This capacity will make Cereplast the second largest producer of bio-based resins in thecountry, the company claimed.
The company's current capacity is currently 27 million pounds of bio-resin per year.
Company spokesperson Jude Schneider told FoodProductionDaily.com that the company currently has about 300 customers, of which about 90 per cent are food related.
They range from food service ware converters, entertainment venues, cities, universities, food distributors, restaurants and caterers. Products made using the company's resin include cutlery, cups, plates and food containers for both cold and hot foods.
"Our resin is easy to work with and runs on traditional converting equipment with no additional capital investment required on the converters end," she said.
Company chairman and chief executive, Frederic Scheer, said the expansion confirms the company's marketing and sales success.
"This expansion allows us to continue to meet the growing demands from our new customers and the ever increasing orders from our existingclients," he said.
Cereplast makes starch-based plastics. It says its breakthrough technology produces bio-based resinsoffers price stability and competitive costs compared to traditional resins. Cereplast resins can be used in all major converting process such as injection molding, thermoforming, blow molding and extrusions.
They are mostly made from corn and potato starch. Cereplast resins are certified biodegradable and compostable bythe Biodegradable Products Institute.