Casey Container in advanced talks with other buyers for its biodegradable plastic bottles, packaging, chairman says; company expects to be in a position to deliver up to 35 million preforms in 2011
November 30, 2010
– Casey Container Corp. (OTC.BB:CSEY - News) has entered the $9.9 billion plastic bottle manufacturing arena as the first company in the U.S. to offer a biodegradable plastic bottle. The Scottsdale, Arizona-based company appears to be years ahead of the competition and may be on its way to becoming a leader in its field.
CSEY announced its first order on Monday for delivery of 1 million plastic water bottles a month. The Contract, which stretches over a 12-month period, did not disclose the buyer or the rate paid, though according to a slide presentation on Casey Container's website, the cost to purchase biodegradable PET resin-based plastic bottles could run anywhere from 4 to 6 cents per preform over conventional PET-generated bottles, placing the value of the contract somewhere north of $500,000 for the period.
A research report issued by IBISWorld on November 23, 2010 points out that there are 185 plastic bottle manufacturers in the United States with 416 plants that generated a total of $9.9 billion in sales in 2009. PET, HDPE and PVC plastic manufacturers made up the largest segment of that group with well over 52%. PET resins are the predominant plastic used in manufacturing food and beverage containers, which is the same group that Casey Containers would compete against, though with one distinct advantage -- there are none of them that make a biodegradable bottle -- CSEY is the first.
Casey Container may have gained as much as a two- to three-year edge on the competition when it licensed the additive, EcoPure. When added to PET or other plastic resin, EcoPure renders the plastic biodegradable, allowing it decompose over a few years' time.
CSEY's plastic container manufacturing isn't limited to bottles, which gives the company an even broader market reach than the U.S. plastic bottle manufacturing sector.
Led by the former CEO of the highly successful Clearly Canadian and Jolt Beverage companies, Mr. Terry Neild, Chairman, Casey Container entered into an agreement to acquire Mountain Green, a maker of all-natural laundry and cleaning products. While CSEY hasn't announced that closing, when completed it will expand the biodegradable plastic packaging market for Casey Container's PET preform products and act as a showcase of its capabilities to other buyers.
"We are in advanced discussions with other buyers of our biodegradable plastic bottles and packaging," said Neild. The CSEY Chairman noted that the Company "expects to be in a position to deliver up to 35 million preforms in 2011."
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