The firm has purchased three new film-extrusion and bag-making machines with the aim to order a further three by end of Q2 2014. Each production line is capable of producing an additional 1.5 million bags/month.
Cardia Bioplastics’ strategy is to expand its finished-products division by having an early impact on global sales. Existing capacity for resin production meets Cardia's business requirements.
Growth in finished products is being driven by a number of factors, including Cardia’s reputation for a price competitive high-quality product, changing legislation and increased global consumer demand for quality sustainable bags, films and other packaging. Cardia’s strategy to focus on finished products is yielding favorable results with early signs that revenues will continue to grow in this division.
Dr. Frank Glatz, Cardia managing director, said, “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. In parallel, Councils and waste management companies have started programs 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.”
Richard Tegoni, Cardia chairman, adds, “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.”