CHINA - Cardia Bioplastics Limited has secured an exclusive contract with the Shanghai Pudong City District in China to supply an estimated US$1.2 million per annum of Cardia’s Biohybrid renewable kitchen waste bags to approximately 20% of householders in this region.
The deals comes after the successful six-month trial of Cardia’s Biohybrid renewable kitchen waste bags – tailored specifically for the collection of food waste - to about 5% of Pudong’s households. As of 2010, Pudong had a population of five million.
The supply contract has the potential to expand rollout, and Cardia says it now opens up significant opportunity to secure additional city councils in China.
“Penetrating into this crucial market opens up significant opportunities for Cardia to grow and expand its global distribution of organic waste management products,” the Australian-headquartered company said in a statement.
“Shanghai Pudong is one of China’s highest profile development areas and represents a key financial and commercial hub for the entire country. There has been a strong focus towards environmental initiatives in the city of Shanghai in recent years.
“This (supply contract) is a critical step towards efficient management of domestic waste,” the company added.
Following the World Expo in 2010, Shanghai implemented an organic waste separation process which targets waste separation at source. Of particular focus is the household separation of plant material and food scraps, which form a large part of the domestic waste stream in China.
There are currently three other councils in China that are conducting trials using Cardia’s Biohybrid kitchen bags - Nanjing, Hangzhou and Yuhang. Cardia is looking to expand into other provinces of China.
Dr Frank Glatz, Managing Director of Cardia Bioplastics said, “This marks another important milestone for Cardia. The success of winning this contract is a result of our superior product technology and effective supply capability through our manufacturing plant in Nanjing, China. Through our successful pilot programs, which are already in place in other key districts in China (Nanjing, Hangzhou and Yuhang) we are confident in our corporate strategy of securing additional long term contracts in China.”
Jackie Chen, Cardia Director and Head of China Operations, added, “We are delighted with this outcome and we will continue to develop and maintain strong Government relationships to work with China City Councils towards managing household waste sustainability and reducing their environmental footprint.”
Cardia's renewable Biohybrid kitchen bags are made with Cardia's proprietary Biohybrid technology that uses less oil and a lower carbon footprint compared to conventional plastics. Cardia Biohybrid resins are a blend of renewable thermoplastic materials and traditional polyolefins.
The company has a certified compostable offering for its organic waste management business, where trials are underway in Australia, New Zealand, Malaysia, Canada, USA, Brazil and the UK.