Cereplast, Inc. (OTCBB: CERP), a leading manufacturer of proprietary bio-based, sustainable plastics, announced today that it has extended its distribution agreement with A. Schulman, Inc. (Nasdaq-GS: SHLM) to include all of Europe. A. Schulman, Inc. is a leading international supplier of high-performance plastic compounds and resins used as raw materials in a variety of markets.
Cereplast’s variety of bioplastic resins will enable A. Schulman to launch a new offering composed of bio-based materials to customers interested in more environmentally-friendly solutions. Under the agreement, A. Schulman will distribute Cereplast Compostables® and Hybrids Resins® to converters and manufacturers throughout Europe. “It is truly an exceptional opportunity for Cereplast to gain a competitive edge,” said Mr. Frederic Scheer, Founder, Chairman and CEO of Cereplast, Inc. “Now that we have extended our distribution agreement with A. Schulman, our resins will remain stable and cost competitive in the European market, one that is already committed to and producing renewable resource based materials commercially.”
According to a 2007 the European Bioplastic Market report by Frost & Sullivan, the bioplastics market in Europe has experienced an exponential growth and demand for bioplastics that has outstripped supply, as converters and end-users are rushing to take advantage of this resurgent technology. With demand still higher than supply, there is sufficient room for new participants as well as existing companies to grow.
Thomas Koerlin, Director Engineered Plastics Europe in Schulman GmbH, adds, “A. Schulman and Cereplast are now able to supply bioplastic resins to a wider range of plastics processors with this distribution partnership, offering those that are looking to strengthen their positions in the sustainable market much more than ever before.”
Currently bioplastics account for less than 1% of the European plastics market. All Cereplast resins replace a significant percentage of petroleum-based additives with starches made out of corn, wheat, tapioca and potatoes, allowing bioplastics to return back to nature within 180 days.
“Our accord with A. Schulman also reinforces our commitment to help address the growing concern regarding the depletion of fossil fuels resources on the global stage,” continued Scheer. “Coupled with A. Schulman’s success, which is seen in virtually every market in every corner of the world, we hope to continue to expand and capitalize on the bioplastics markets’ potential in Europe, for our resins because they offer sustainability gains and other benefits versus traditional plastics.”
About A. Schulman
Headquartered in Akron, Ohio, A. Schulman is a leading international supplier of high-performance plastic compounds and resins. These materials are used in a variety of consumer, industrial, automotive and packaging applications. The Company employs about 2,200 people and has 14 manufacturing facilities in North America and Europe (including Asia). Revenues for the fiscal year ended August 31, 2007, were $1.8 billion..
About Cereplast, Inc.
Cereplast, Inc. (OTCBB:CERP) designs and manufactures proprietary bio-based, sustainable plastics which are used as substitutes for petroleum-based plastics in all major converting processes – such as injection molding, thermoforming, blow molding and extrusions – at a pricing structure that is competitive with petroleum-based plastics. On the cutting-edge of bio-based plastic material development, Cereplast now offers resins to meet a variety of customer demands. Cereplast Compostables Resins® are ideally suited for single use applications where high bio-based content and compostability are advantageous, especially in the food service industry. Cereplast Hybrid Resins® combine high bio-based content with the durability and endurance of traditional plastic, making them ideal for applications in industries such as automotive, consumer electronics and packaging. L
Safe Harbor Statement
Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.
Source: Cereplast, press release, 2010-01-05.