New China supply deal for Cardia Bioplastics

Australian manufacturer of sustainable packaging products and resins Cardia Bioplastics has struck a major agreement with a Chinese bag manufacturing company - its third China deal in three months.

The new agreement with the unnamed company will ensure that a minimum US$0.8m pa of Cardia Bioplastics’ products will be purchased by the Chinese bag company. These products will then be exported to the company’s local and international client base.

In the past quarter, Cardia has announced supply agreements with:

• Ben’s Land - a US$1.5m annual agreement for nappy and feminine products
• Beifa Group - an agreement with China’s largest pens and stationery supplier to manufacture pens from sustainable resins rather than traditional plastics

Cardia also recently announced an agreement with Australian-owned Nature Organics for the supply of its bioplastics resin technology for ‘bottles and closures’ for a range of products.

Cardia’s Chairman Pat Volpe said, “These last four agreements cover nappies and feminine hygiene products, pens, bags, bottles and closures.

“A substantial percentage of the world’s plastics products are manufactured in China. The accelerated interest in bioplastics makes it logical that Cardia is now receiving a great amount of interest from Chinese companies which have an established portfolio of international clients.”

Volpe said this US$0.8m minimum annual order contract was won because Cardia’s compostable resins met stringent international compostability standards.

He noted that the range of renewable Biohybrid and certified compostable resins was creating ‘significant’ interest in China where the company’s manufacturing plant was located, but also in other countries which were aggressively pursuing greener alternatives.

“Our bioplastics will be used in day-to-day consumer products, including shopping bags, but also in other finished consumer products.”