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Cardia Bioplastics extends supply of kitchen waste bags in China

Released: 26/01/2012 09:05:28
Read 2537 times

The Board of Cardia Bioplastics Limited is pleased to announce that it is supplying three more City Districts in China to provide householders with kitchen waste bags made from Cardia renewable Biohybrid™ products that contain less oil and have a lower carbon footprint compared to conventional plastics. Cardia also announced on 16 December 2011 that it was awarded the supply contract by the City of Nanjing.

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The four City Districts supplied by Cardia now include:
•    Shangai Pudong (City District) population of 7m people.
•    Hangzhou West Lake (City District) population of 8m people
•    Yuhang (City of Yuhang) population of 1m people.
•    Nanjing (City of Nanjing) population of 7m people.
The orders are for supplying Cardia Biohybrid™ bags for trials in households that are being conducted and will continue over the next six months. The total sales value for the supply of bags for the trials is expected to be in the order of AUD$600,000 over the next 6 months.

If the orders extend beyond the trial period, it could grow to cover a larger radius of householders in each region where the population as shown above combines to a potential market of 23 million people.

If all or some of these trials produce successful results and Cardia Biohybrid™ kitchen waste bags are fully adopted by the city districts, then an annual contract would be negotiated. Until then, no long-term commitment can be guaranteed.

Mr. Jackie Chen, Cardia Director and Head of China Operations said he was delighted with the outcome and will continue to work with the Government officials of these City Districts to secure long-term contracts in China.

“The Cardia range of renewable Biohybrid™ and certified compostable products also meet the Chinese packaging regulations, enacted in June 2008. Our Nanjing manufacturing business is one of the few Chinese companies awarded with the prestigious China Environmental Label," he said.

"This is further validation not just of the rapidly increasing market for bioplastics products, but also of Cardia’s excellent Government relationships in China, following from our supplying the 2008 Beijing Olympics, Paralympics and 2010 Shanghai World Expo.” Mr Chen said.

The potential to grow sales revenue from this business opportunity in China is high on Cardia’s marketing agenda in 2012.

Cardia’s renewable Biohybrid™ kitchen bag business for the China market is based on Cardia’s proprietary Biohybrid™ technology using less oil.

Cardia has also a certified compostable offering for its organic waste management business, where trials are underway in Australia, New Zealand, Malaysia, Canada and the UK.

More info:
www.cardiabioplastics.com

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