Manufacturer of sustainable resins Cardia Bioplastics is setting up its own film and bag manufacturing plant in São Paulo, Brazil.
The ASX-listed company said in a statement that the new factory is expected to deliver a production capacity of 500 million retail carry bags per year. This is over four times greater than the capacity of the existing Cardia Bioplastics manufacturing plant in Nanjing, China.
Cardia’s Brazilian bag making capacity equates to less than 1% of the Brazilian retail carry bag market. Cardia Bioplastics has established itself over the last couple of years as a supplier of environmentally preferred retail carry bags to the Brazilian market and secured annual supply contracts with high profile Brazilian retailers Ricoy Supermercados and Drogaria Araujo.
As reported by Proactive Investors Australia, last week Cardia Bioplastics was granted a trading halt by the ASX pending details in relation to its business expansion.
The company attended the APAS 2014 Fair in São Paulo, where it won increased local sales orders.
Cardia Bioplastics Latin America Managing Director João Paulo Mignot said, “…The Brazilian retail market is a major market for our Biohybrid carry bags. With our own production coming on stream, we are now poised to deliver the increasing orders that we have been receiving, whilst further growing the business.”
“Following the success at the APAS Fair in conjunction with regular sales through established channels, we have confidently committed to establishing our own production in Brazil to meet demand...”