Plantic Technologies Limited and National Starch LLC have announced a collaboration to establish a site for the manufacture of Plantic products in the USA. This covers the relocation of one of Plantic's existing proprietary manufacturing lines from Australia to USA, and a new manufacturing facility in USA. With this, Plantic will shortening supply chain through integration of National Starch raw material supply with the Plantic manufacturing process. The relocation of one of Plantic's existing proprietary manufacturing lines from Australia to the US, in collaboration with National Starch, will improve economies of scale and substantially shorten the supply chain, by integrating the supply of the key raw material, which it receives from its alliance partner, National Starch, with the Plantic manufacturing process. The overall effect will be to reduce the current cost of Plantic materials. The facility will also bring R&D and manufacturing into closer collaboration.
This project represents the next phase of Plantic's long-term manufacturing strategy. It will enable Plantic's partners that produce rigid sheet, injection moulding, blow moulding resins and flexible packaging resin to distribute them more effectively and at a lower cost. The project also enhances the close alliance that Plantic already has with National Starch, Plantic's main supplier of specialty modified starches. National Starch's natural polymer expertise and extensive experience in manufacturing, together with Plantic's expertise in bioplastics technology, provides a strong partnership that is expected to enhance further the product offering by reducing the costs of Plantic resins. According to Plantic's CEO, Brendan Morris, "The manufacturing facility in collaboration with National Starch is expected to significantly reduce the current cost of Plantic materials by integrating the two processes of manufacturing and key raw material supply. This significant progression of Plantic's manufacturing strategy allows us to deliver greater value to our customers, distributors and conversion partners." He added, "The Company is also in discussions with partners and customers with a view to expanding market penetration, and anticipates making further announcements on these discussions early in the New Year." Neil Grimwood, Vice President of Strategy for National Starch , commenting on the establishment of Plantic's manufacturing facility in conjunction with National Starch commented, "We believe Plantic's expansion in the U.S. opens the doors to the North American biopolymers marketplace and will enhance the use of starches to create sustainable plastic alternatives."