Australian manufacturer of sustainable packaging products and resins, Cardia Bioplastics has struck a major agreement with a bag manufacturing company based in China - its third such deal in three months.
The new agreement with the unnamed company, remaining anonymous for commercial sensitivity, will ensure that a minimum US$0.8m pa of Cardia Bioplastics products purchased by the Chinese bag company. These products will then be exported to the company's local and international client base.
This agreement follows on from a series of deals in China across different market segments recently announced to the ASX, and adds to the Cardia's growing international reputation.
In the past quarter, Cardia has announced supply agreements with Ben's Land - A US$1.5m annual agreement for nappy and feminine products. And Beifa Group, an agreement 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 across a range of products.
Pat Volpe Chairman of Cardia says the recent deals demonstrated the momentum Cardia was gaining in the international marketplace, and also highlighted its broad product offerings using patented technology surrounding the use of bioplastics and sustainable resins. He said the bag company was not being named to protect commercial sensitivities.
Volpe says, “These last four agreements cover nappy and feminine hygiene products, pens, bags, bottles and closures. This demonstrates the vast potential for sustainable resins. Companies around the world are in need of internationally accredited, quality bioplastics.
“A substantial percentage of the world's plastics products are manufactured in China. The accelerated interest in bioplastics makes it logical that Cardia is receiving a great amount of interest from Chinese companies which have an established portfolio of international clients.”
Volpe added that this US$0.8m minimum annual order contract was won because Cardia's compostable resins met stringent international compostability standards.