Cereplast signs distribution agreement with ColoTec to supply bioplastic resin to Italian, Slovenian markets, effective Nov. 4; deal entails US$20M purchase of product, makes ColorTec main distribution partner in Italy
EL SEGUNDO, California
November 7, 2011
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Agreement Reflects Continued Demand in European Marketplace
Cereplast, Inc , a leading manufacturer of proprietary biobased, compostable and sustainable plastics, has extended its agreement with Italy-based ColorTec S.r.l to supply bioplastic resin to the Italian and Slovenian markets effective November 4, 2011 through December 31, 2012. Under the terms of the agreement, ColorTec is projecting to purchase $20 million of materials in 2012.
"With the signing of this significant agreement, ColorTec intends to purchase $20 million of product in 2012 and becomes Cereplast's main distribution partner in Italy," said Frederic Scheer, Founder, Chairman and CEO of Cereplast, Inc. "The expansion of this agreement reflects the increasing demand for our bioplastic products in Italy, where we have recently completed the purchase of a manufacturing plant, expected to start production in 2012. We look forward to continuing our already strong relationship with ColorTec to expand our footprint in Italy."
"We have been serving Southern Italy and will be broadening our reach to capture increasing demand in Northern Italy," stated Gaetano Paolillo, chief operating officer of ColorTec. "We find that Cereplast bioplastics provide superior properties compared to other bioplastic resins, providing better performance and improved strength. As such, we expanded our relationship with Cereplast."
Based in Italy, ColorTec is a leader in designing and developing masterbatches for adding colorant to bulk, uncolored resins. Its color and additive masterbatches are used in all major plastic processing methods, including blown and cast films, blownware, injection molding, extrusion coating, wire and cable, pipe and conduit, fiber spinning, among others.
About Cereplast, Inc.
Cereplast, Inc. /quotes/zigman/117316/quotes/nls/cerp CERP -14.64% designs and manufactures proprietary biobased, sustainable plastics which are used as substitutes for traditional plastics in all major converting processes - such as injection molding, thermoforming, blow molding and extrusions - at a pricing structure that is competitive with traditional plastics. On the cutting-edge of biobased 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 biobased content and compostability are advantageous, especially in the food service industry. Cereplast Sustainables(R) resins combine high biobased 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 . You may also visit the Cereplast social networking pages at Facebook.com/Cereplast, Twitter.com/Cereplast and Youtube.com/Cereplastinc.