Cardia Bioplastics was one of the first to enter the bioplastics sector. Since then, its proprietary technology has focused on developing high quality fully certified compostable and biohybridfilms, bags and products at a competitive price.
That has been going well - so well that the company is in the middle of a major expansion to meet the demand for its Cardia Biohybridand Cardia Compostable films, bags and custom finished products.
It has already purchased three new film extrusion and bag making machines and intends to order three more by the end of June quarter. Each production line is capable of producing an additional 1.5 million bags per month.
Cardia Bioplastics’ strategy to expand its finished products division is already having early impact on global sales. The increased finished products' capacity will enhance sales margins, as Cardia products will be made in-house.
Resin production will not be changed because it is meeting business requriements.
Cardia gauges that growth in its finished products is being driven by a number of factors, including Cardia’s reputation for a price-competitive, high quality product, changing legislation and increased global consumer demand for quality sustainable bags, films and other packaging. Cardia’s strategy has been to to focus on finished products. This has produced strong results and Cardia believes that revenues will continue to grow in this division.
Cardia's managing director, Dr Frank Glatz, said, “The market dynamics are shifting. Over the past few years brand owners, retailers and packaging companies have commenced using bioplastic resins, films and packaging to replace conventional plastics. In parallel, councils and waste management companies have started programmes to separate organics from landfill, using compostable bags to divert organic waste from households and industry to composting. Both developments offer growth opportunities for the Cardia Bioplastics business.”
“These are exciting times for Cardia Bioplastics. By focusing on finished products sales we stand to generate strong revenue streams. With orders flowing in from major international companies, well known brand names, councils and governments around the globe, Cardia is reaping the results of years of developing innovative solutions, as well as technological and product refinement to deliver high quality products at competitive prices,” Cardia chairman, Richard Tegoni, added.
