Cereplast, Inc., a leading manufacturer of proprietary biobased, compostable and sustainable bioplastics, today announced an update on the restructuring of its global operations.
As of June 1, 2013, the Company has successfully completed the restructuring by relocating its corporate headquarters from California to its production facility in Indiana, as well as relocating its European headquarters from Germany to its offices in Italy. The closure of the offices in California and Germany is expected to reduce annual operating expenses by $600,000 to $800,000.
Cereplast Chairman and CEO Mr. Frederic Scheer commented, “In taking the necessary steps to reduce our costs we have been able to focus our resources on sales and manufacturing. We added two sales veterans to our team during the second quarter. As a result, sales have continued to grow during the quarter demonstrating that we are on our way to recovery. The delay in the enforcement of the sanctions in Italy has created a minor slowing in sales, however our revenues in the first half of 2013 will substantially exceed that of the same period in the prior year, as we continue to ship new products to Italy and India. We anticipate that the growth during the remainder of the year will be substantially higher than the first six months, pending the sanctions becoming fully effective in the fall of 2013.”
About Cereplast, Inc.
Cereplast, Inc. (OTCQB:CERP) designs and manufactures proprietary biobased, sustainable bioplastics which are used as substitutes for traditional plastics in all major converting processes – such as injection molding, thermoforming, blow molding and extrusions – at a pricing structure that is competitive with traditional plastics. On the cutting-edge of biobased 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 biobased content and compostability are advantageous, especially in the food service industry. Cereplast Sustainables® resins combine high biobased content with the durability and endurance of traditional plastic, making them ideal for applications in industries such as automotive, consumer electronics and packaging.
Source: Cereplast, press release, 2013-06-25.