Australia's Cardia Bioplastics Ltd. says the high demand for environmentally friendly bags has prompted it to set up a film and bag plant in São Paulo, Brazil, which is due to start production in September 2014.
The company says that the new factory is expected to deliver a production capacity of 500 million retail carry bags per year, which is over four times greater than that of the current Cardia Bioplastics manufacturing plant in Nanjing, China.
Earlier this year, Cardia expanded production in Nanjing to keep up with demand, including increased sales in Brazil. The Nanjing plant had been the only manufacturing site for the Melbourne-based company.
Cardia Bioplastics Latin America Managing Director João Paulo Mignot said, “We are thrilled with our new manufacturing facility. 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.”
Cardia Bioplastics Managing Director Frank Glatz said, “The establishment of Cardia’s own production facilities in Brazil could not have come at a better time. We have seen strong growth in demand for Cardia Biohybrid bags — environmentally preferred bags that use less oil, have a lower carbon footprint and are heavy metal free, driven by consumer, retailers, brand owners, municipals and government.”
Cardia Bioplastics says that A$750,000 (US$699,000) worth of machinery for the new plant has been funded using vendor finance during the past 12 months.