Dallas, Texas 12/10/2013 (FINANCIALSTRENDS) – Cereplast Inc (OTCMKTS:CERP) is one of the leading manufacturers of bio plastics and uses proprietary sustainable products. Typically, these products are used in place of some of the more traditional plastics by plastic application industries. Products that Cereplast produces is mainly used in the various converting processes that are part of several plastic industries such as injection molding, blow molding, extrusions as well as thermoforming.
The advantage Cereplast provides its clients is not just on the point of pricing but on greener alternative. Bioplastic is an emerging market space where the trend is directed toward development of resins which are biodegradable and aligned with recycling norms. Therefore, one of the main industries where it is found to be used extensively is in the consumer electronics, packaging as well as the automotive industry.
Cereplast comments on Plastic bag legislation
Cereplast Inc (OTCMKTS:CERP) has a major stake in the European plastic bag consumption scenario. Following Italy’s Decree on plastic bags, the bioplastic industry has seen tremendous income growth. The new law, effective January 1, 2014, in France will see Cereplast continuing to play an important role in the Europe as it already works with many French clients. The company has been focused on developing bioplastic bags as well as biodegradable plastic bags consumer segment for French tastes in the past couple of years. 2014, is expected to see an increase in the revenue of Cereplast from French quarters, because of the mature French market it has helped develop and sustain.
French plasticbag law
The new French legislation demands will impose a tax on the use of plastic bags, especially for the varieties which are used once in a while. This would continue as a general tax so as to prevent further pollution. The tax would currently be fixed at $0.08 per bag. With every passing year, the price would also increase proportionately.
EU EnvironmentalCommission rules
Under new laws implemented by the EU Environmental Commission, a tax on carry bag which contain 50 microns is under implementation, effective November 15. EU members are expected to meet the requirements within two years.
Cereplast Inc (OTCMKTS:CERP) as one of the few plastic-based companies which use bio components using proprietary technology to develop degradable and increasingly compostable bioplastic bags.
Following the full implementation of the EU Rule, the necessity for biodegradable bioplastic bags will be in the region of 1 million tonnes per year. For CERP this would translate into $4 billion per year.
The facility at its Indiana center, Seymour which produces 40k tons per year, to the tune of $125 million will be insufficient to help the company to meet demand.
A delighted Chairman and CEO, Frederic Scheer, announced that the industry and CERP in particular will see investor interests appreciate. Besides, its rich haul of patents, numbering over 20, for US as well as worldwide destinations. The patents are for biobased. Bioplastic resin technology.
Cereplast Inc (OTCMKTS:CERP) has developed and expanded its facilities, in the more than a decade that the company has been operational. Earlier in 2011, it acquired a plant for continuing its manufacturing in Assisi. The resin-based products it develops using algae, potatoes and other bio-products have seen innovative and traditional food and service industry applications as well as product development in the past few years.