Australian headquartered Cardia Bioplastics announced that it is setting up its own film and bag manufacturing plant in São Paulo, Brazil. New purpose-built facilities have been leased and production commencement is scheduled for September 2014. The production machinery costing A$750,000 is funded using vendor finance over a twelve months period. The new factory is expected to deliver a production capacity of 500 million retail carry bags per year. This capacity is over four times greater than that of the current Cardia Bioplastics manufacturing plant in Nanjing, China.
Cardia’s Brazilian bag making capacity equates to less than 1% of the Brazilian retail carry bag market. Cardia Bioplastics has established itself over the last couple of years as a reliable supplier of quality environmentally preferred retail carry bags to the Brazilian market and secured annual supply contracts with high profile Brazilian retailers Ricoy Supermercados and Drogaria Araujo.
Cardia’s success at Brazil’s APAS 2014 Retail Fair saw significant orders being placed for retail carry bags validating the quality and high demand for Cardia products. Cardia Bioplastics Latin America Managing Director João Paulo Mignot stated, “We are thrilled with our new manufacturing facility. The Brazilian retail market is a major market for our Biohybrid carry bags. With our own production coming on stream, we are now poised to deliver the increasing orders that we have been receiving, whilst further growing the business.”
João Paulo Mignot continued, “Following the success at the APAS Fair in conjunction with regular sales through established channels, we have confidently committed to establishing our own production in Brazil to meet demand. Brazil is a rapidly growing market with keen interest and orders from retailers for Cardia Biohybrid bags.”
Cardia Bioplastics Managing Director Dr. Frank Glatz stated, “The establishment of Cardia’s own production facilities in Brazil could not have come at a better time. We have seen strong growth in demand for Cardia Biohybrid bags – environmentally preferred bags that use less oil, have a lower carbon footprint and are heavy metal free, driven by consumer, retailers, brand owners, municipals and government.”
Cardia Bioplastics Chairman Richard Tegoni stated, “This represents a key milestone in the implementation of our business strategy to establish a finished products division with its own dedicated resources and manufacturing capability in key markets. The vertical integration from Cardia Biohybrid resins to Cardia Biohybrid™ films and bags ensures product quality, control of supply, improved margins and enhanced cost structures that underpin Cardia’s global growth strategy.”