Plantic Technologies Limited, manufacturer of unique biodegradable polymers made from starch for packaging and other applications, has announced that it will build a manufacturing plant in Jena, the second largest city in the state of Thuringia, Germany.
Plantic will receive a grant from the German Government, which is expected to contribute up to 45% towards capital investment in developing the European plant.
This funding contribution will assist Plantic in establishing its operations in a growing bioplastics market and is an indication of Germany’s overarching commitment to the environment.
Plantic Technologies already exports rigid sheet product from Australia to European thermoforming contractors and, finally, to packaging manufacturers for supply to brand owners in the UK and Continental Europe.
Based on Plantic’s success to date, the Company now plans to establish a manufacturing presence in Europe with the aim to deliver greater value to customers.
In phase one of a two phase strategy, Plantic will establish, by the first quarter of 2009, a thermoforming operation in a newly leased factory in Jena.
This operation will allow for rapid prototyping, more efficient customer trials, and increased production capacity.
and will accelerate Plantic’s entry into the European thermoforming market and, most importantly, further improve Plantic’s competitiveness and response to customers and brand owners.
The total investment in this first phase, before subsidies, is €1.2 million.
Once sufficient thermoforming volume is established, based on imported sheet, it is planned that a second phase of the strategy will be implemented by installing rigid sheet production.
This strategy will eliminate sea freight, thereby streamlining the supply chain and, ultimately, lowering Plantic’s production costs.
Extruded Plantic® materials will not only be utilized by Plantic’s thermoforming business, but also by third party thermoformers and processors.
Mr. Brendan Morris, Chief Executive Officer, Plantic Technologies Limited says Plantic’s decision to establish a manufacturing operation in Europe is a very important and exciting development, not only for the Plantic team, but for all Plantic stakeholders.
“The European plant will allow us to deliver greater value to our customers, brand owners and thermoformers through improved local development capability, lower costs, and greater service efficiency," he says.
"Establishing Plantic’s European manufacturing operation is another step towards enabling our European customers to receive products with an even smaller carbon footprint.”
Thuringia’s Minister of Economy, J?rgen Reinholz, welcomes Plantic’s decision to establish a manufacturing operation in Jena.
“Plantic’s investment brings innovative, sustainable-driven technology to Thuringia, showing that Thuringia is an attractive location for international investors,” he says.
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