A PET preform startup company has inched closer to commencing U.S. manufacturing, officials said.
Casey Container Corp. of Scottsdale, Ariz., said in a June 9 news release that it has completed the majority of the due diligence process in its proposed acquisition of Mountain Green of Arizona LLC, a Tempe, Ariz.-based manufacturer of plant-based detergent, household cleaning and baby products.
According to the release, Casey on March 3 entered into a non-binding memorandum of understanding with Mountain Green for the purchase of its assets. The parties are trying to close the deal within 60 days, Casey CEO Terry Neild said in a June 9 telephone interview.
We're going to set up a bottle blowing machine inside their plant, he said. Neild did not give details about the machinery, but said the plant is 14,000 square feet. Previously, Mountain Green purchased its bottles from an outside supplier, he said.
Casey was formed in January from Sawadee Ventures Inc., an exploratory mining outfit created in 2006 to pan for gold, silver and copper in Canada. Sawadee in 2008 became a shell company, in search of new business partners and opportunities.
Casey's preforms would be made with a Food and Drug Administration-approved additive, EcoPure, which the company claims enhances biodegradability in microbe-rich environments such as landfills and industrial composting facilities. Bio-Tec Environmental LLC of Albuquerque developed the additive.
Casey had sought to open its first processing facility for PET preforms in Tampa, Fla., with its affiliate, Taste of Aruba Inc., blow molding water bottles at a site on the Dutch island of Aruba. But according to recent Securities and Exchange Commission filings, Casey has not generated any income since its inception, and incurred a loss of about $48,000 for the first quarter of 2010. The company has three employees and no machinery.
Neild said that the Aruba molding plant is close to starting production and that Casey is seeking additional funding to get its U.S. operations going. The company is attempting to acquire an existing molding business to avoid additional costs.
We're negotiating with a couple of companies to buy them out, he said. Neild would not identify those companies.
According to its SEC filings, Casey's EcoPure technology can be used with PET, polystyrene, polypropylene, polyethylene, PVC and most other types of polymer. The additive adds nutrients and other organic compounds that weaken the polymer chain and allow microbial action to colonize in and around the plastic, turning the plastic into biomass, biogas or carbon dioxide.
Casey claims its products biodegrade in one to five years in composting facilities and landfills.
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