Halfway through the year, Plantic Technologies will decide on building a biopolymer plant in Eastern Europe. Europe is currently the key target in the US$1 bln (£507 mln) market for bioplastics.
The capacity in Europe is desired as it would eliminate sea freight, which accounts for 12% of sales costs in Europe. In late April, Plantic's maiden results showed a 30% drop in sales to A$2 mln for 2007, due to a change in product mix and a longer-than-expected completion time for a marketing agreement with DuPont. Although the sales growth projections are impressive, they are more conservative than previous Plantic forecasts. Exclusive deals with National Starch and Penfold have given Plantic a tight hold on supply of corn starch for polymers while marketing agreements with DuPont, Bemis and Amcor should give it access to global packaging markets, said Mr Morris. The company has also revealed another agreement with DuPont, taking Plantic products into Japan.