Cereplast: Funding from European Group
Cereplast, Inc., developer of proprietary bio-based sustainable plastics, announced that the company has received funding from a European group of investors led by a major Swedish bank. The funds will be used to implement Cereplast’s new strategic plan to accelerate growth and to finance manufacturing supply agreements for the company’s major customers such as Georgia-Pacific and Dorel.
“The additional capital allows us to move forward aggressively in a very challenging economic environment,” said Frederic Scheer, Chairman and CEO of Cereplast. “This investor group clearly understands the rapidly growing market opportunity for bio-plastics and has endorsed our business model that leverages our proprietary product development capabilities and marketing strengths.”
Others in the financial community have also commented favorably about Cereplast’s new strategic plan. “The new licensing structure has the potential to help Cereplast land contracts with large packaging companies, which require large quantities of resin in a short time,” said René Nicolodi, senior sustainability analyst at Zuercher Kantonalbank (Zurich Cantonal Bank), which began looking at Cereplast in 2007 as a potential investment from a sustainability perspective.
“It's quite important to note that their business plan or model until very recently was to ramp up their own production facilities for a variety of products, and that's capital intensive, so it's a challenging thing to achieve," Nicolodi said. “The change in the business model to license out the production to the clients makes sense from my point of view."
About Cereplast, Inc.
Cereplast, Inc. designs and develops proprietary bio-based, sustainable plastics which are used as substitutes for petroleum-based plastics in all major converting processes - such as injection molding, thermoforming, blow molding and extrusions - at a pricing structure that is competitive with petroleum-based plastics. On the cutting-edge of bio-based plastic material development, Cereplast now offers resins to meet a variety of customer demands. Cereplast Compostables(R) resins are ideally suited for single use applications where high bio-based content and compostability are advantageous, especially in the food service industry. Cereplast Hybrid Resins(R) combine high bio-based content with the durability and endurance of traditional plastic, making them ideal for applications in industries such as automotive, consumer electronics and packaging. Learn more at www.cereplast.com.
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