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Cardia Bioplastics expands compostable film and bag production in China

Cardia Bioplastics expands compostable film and bag production in China, Cardia Bioplastics Limited, Asia packaging, China, Australia
Compostable resins, films, bags and custom finished products manufacturer Cardia Bioplastics Limited is doubling film and bag making capacity at its plant in Nanjing, China, to meet increasing demand.

The Australian-headquartered supplier of Cardia Biohybrid and Cardia Compostable branded products says it has invested in three new film extrusion and bag making machines, with plans to order an additional three units by end-June. Each new production line will be capable of producing an additional 1.5 million bags monthly.

This investment is in line with the company’s strategy of expanding its finished products division, which will help enhance sales margins as Cardia products will be manufactured in-house. Already, the company says this corporate direction is yielding “favourable results”, with early signs that revenues will continue to grow in this division.

Cardia Bioplastics is confident that demand in its finished products will continue to grow, fuelled by changing legislation and increased global consumer demand for quality sustainable bags, films and other packaging.

“The market dynamics are shifting. Over the past few years brand owners, retailers and packaging companies have commenced using bioplastic resins, films and packaging to replace conventional plastics,” said Dr. Frank Glatz Cardia’s Managing Director.

“In parallel, councils and waste management companies have started programmes to separate organics from landfill, using compostable bags to divert organic waste from households and industry to composting. Both developments offer growth opportunities for the Cardia Bioplastics business.”

Cardia’s Chairman Richard Tegoni added, “These are exciting times for Cardia Bioplastics. By focusing on finished products sales we stand to generate strong revenue streams. With orders flowing in from major international companies, well known brand names, councils and governments around the globe, Cardia is reaping the results of years of developing innovative solutions, as well as technological and product refinement to deliver high quality products at competitive prices.”

Cardia Bioplastics recently announced that it had secured from the Nanjing Jianye District the first quarter order of A$250,000 (US$223,390) for the supply of Cardia waste management bins and Cardia Biohybrid kitchen waste bags to the individual households of this city district with a forecast of A$1 million (US$893,557) annual supply requirement. The contract win follows the successful one-year trial of Cardia products in Nanjing’s various city districts.

In China, the company also has an existing A$1.2 million (US$1.07 million) annual supply contract with Shanghai Pudong city district.


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