12 September 2014

Cardia Bioplastics wins $350,000 waste management products supply contract in Nanjing, China

Continues momentum of growth for Cardia’s China business with focus on organic waste management products

  • image-tools.phpNanjing Jianye District awards Cardia Bioplastics orders of A$350,000 and extends its supply contract for waste management products.
  • Annual supply requirement forecast for A$1 million.
  • Contract represents 7% of Nanjing City households with potential to expand rollout.
  • Significant opportunity to secure additional City Councils in China.

Cardia Bioplastics Limited is pleased to announce that Nanjing Jianye District has extended its supply contract for Cardia waste management products and awarded additional orders of A$350,000 to be supplied before the end of October. The additional orders are for the supply of Cardia Biohybrid™ kitchen waste bags to the individual households of this region validating the former forecast announced on 17 February 2014 of a A$1 million annual supply requirement and Cardia Bioplastics as preferred supplier.

Cardia renewable products were validated through the Jiangsu Province Testing Laboratories, with Jianye enforcing the renewable content requirement, all of which standards Cardia products successfully met. Cardia Biohybrid™ kitchen waste bags are made with Cardia’s proprietary Biohybrid™ technology that uses less oil, is cost competitive and delivers a lower carbon footprint compared to conventional plastics.

The contract win follows the successful one-year trial of Cardia products in Nanjing’s various city districts and initial order placements of A$250,000 in February 2014. Nanjing Jianye District is the first city district to have moved forward with full commercial roll out of their organic waste diversion programme using Cardia products. Nanjing’s other district councils are at various stages of their trial programmes, with several councils expected to progress to full-scale implementation. With a population of over 6 million, Nanjing is actively moving towards organic waste diversion.

The win follows the recent expansion of Cardia’s production capability with a move to a new factory in Nanjing. The new factory has increased Biohybrid™ and Compostable bag making capacity to 100 million bags per year, meeting the increasing global demand for Cardia’s carry and waste management bags, hygiene and nappy films and custom products.

Dr. Frank Glatz, Managing Director of Cardia Bioplastics said: “We are very excited about the continued growth of the Nanjing Jianye District waste management program. The success of winning these contracts is a result of our superior product technology, validation of product performance and effective supply capability through our new manufacturing plant in Nanjing, China. We feel confident that by the end of this year more China City Councils will be implementing similar programmes.”

Mr. Jacky Chen, Cardia Bioplastics Global Director of Sales and Head of China Operations stated: “The increased order validates our product’s quality and sustainability benefits, as well as our strong Government relationships with China City Councils. We look forward to further working with China City Councils towards managing household waste sustainably and reducing their environmental footprint. Our recent move to larger production facilities is certainly reaping rewards.”

Cardia offers certified compostable products through its organic waste management business, which is delivering sales in Australia, New Zealand, Malaysia, Canada, USA, Brazil and the UK.

Source: Cardia Bioplastics Limited, press release, 2014-09-09.


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