- Each production line capable of producing an additional 1.5 million bags per month. Cardia Bioplastics’ strategy to expand finished products division having early impact on global sales.
- Increased finished products capacity will enhance sales margins, as Cardia products will be made in-house.
- Existing capacity for resin production meets business requirements.
Cardia Bioplastics Limited (ASX: CNN), the supplier of Cardia Biohybrid™ and Cardia Compostable resins, films, bags and custom finished products is expanding production to meet increasing demand for its film and bag products.
An early entry into the bioplastics sector, Cardia Bioplastics proprietary technology has focused on developing high quality fully certified Compostable and Biohybrid™ films, bags and products at a competitive price point.
Growth in finished products is being driven by a number of factors, including Cardia’s reputation for a price competitive high quality product, changing legislation and increased global consumer demand for quality sustainable bags, films and other packaging. Cardia’s strategy to focus on finished products is yielding favourable results with early signs that revenues will continue to grow in this division.
Dr. Frank Glatz Cardia’s Managing Director said, “The market dynamics are shifting. Over the past few years brand owners, retailers and packaging companies have commenced using bioplastic resins, films and packaging to replace conventional plastics. In parallel, Councils and waste management companies have started programmes to separate organics from landfill, using compostable bags to divert organic waste from households and industry to composting. Both developments offer growth opportunities for the Cardia Bioplastics business.”
Richard Tegoni Cardia’s Chairman stated, “These are exciting times for Cardia Bioplastics. By focusing on finished products sales we stand to generate strong revenue streams. With orders flowing in from major international companies, well known brand names, Councils and Governments around the globe, Cardia is reaping the results of years of developing innovative solutions, as well as technological and product refinement to deliver high quality products at competitive prices.”