The two companies will build a €80m production site with a 10,000 tons/year output, in São Paulo and/or Acre State, to become the ‘most advanced’ biopolymers facility in South America.
60 jobs will be created
“We have decided to invest €5,5m in acquiring the production license and another €80m in constructing the first facility because Bio-on technology represents an exceptional opportunity for industrial development in Brazil,” said Otávio Pacheco, management partner, Moore Capital.
The production hub will create 60 jobs plus allied industries, helping to meet the high demand for biopolymer already coming in from numerous companies that transform or produce conventional plastic in Brazil.
Moore Capital also has an option to build a second plant in Brazil.
PHAs, or polyhydroxyalkanoates, are bioplastics that can replace a number of traditional polymers currently made with petrochemical processes using hydrocarbons.
The PHAs developed by Bio-on guarantee the same thermo-mechanical properties with the advantage of being completely naturally biodegradable.
"We will create Brazil's first PHAs production facility with a company attentive to ecology and sustainability - two key ingredients of the chemical industry of the future," said Marco Astorri, chairman, Bio-On.
Global bioplastic packaging demand
"We will also work towards studying how to further develop the business of the high-performing biopolymers produced in Brazil with Bio-on technology in south America.”
Bio-On, an Italian Intellectual Property Company (IPC), operates in the bioplastic sector conducting applied research and development of modern bio-fermentation technologies in eco-sustainable and naturally biodegradable materials.
It develops industrial applications through the creation of product characterisations, components and plastic items.
According to Smithers Pira, global bioplastic packaging demand is forecast to reach 884,000 tonnes by 2020. A 24.9% CAGR is expected from 2010-15 slowing to 18.3% in the five years to 2020.
As part of its report, The Future of Bioplastics for Packaging to 2020: Global Market Forecasts, packaging market demand will shift from biodegradable and compostable polymers towards biopackaging based on renewable and sustainable materials.
Polyhydroxyalkanoates (PHA) are forecast to achieve a CAGR of 41% and bio-derived PE a staggering 83% over the period.