South African food packaging company uses SECOS Group’s Compostable Resin for bags

  • May 23, 2019 AEST
  • Team Kalkine
South African food packaging company uses SECOS Group’s Compostable Resin for bags

Sustainable and eco-friendly bioplastics developer SECOS Group Limited (ASX: SES) announced that a food packaging company in South Africa, Superior Packaging Industries (Pty) Ltd, has developed food produce bags using SECOS Group’s Cardia Bioplastics Compostable Resins. The news sent the stock price to jump up by 8.163% in a day-trade to close at $0.053 on 23 May 2019.

Based in Cape Town, Superior Packaging Industries has developed a new range of eco-friendly products using SES’ Cardia resins. New eco-friendly products are introduced as an alternative to single use plastics, it includes high quality compostable bunch carry bags and carton liner. These products are widely used in food delivery and packaging such as grape bags and fruit box liner products as an alternative to single use plastics.

Product from the use of Cardia (Source: Company’s Announcement)

The report read that SECOS has received commercial orders and expecting the sales numbers to grow as sales expand for the products. The growth in commercialisation of Cardia Resins outline the FDA approval for its use, which confirms the safety in using Cardia BF04 Resins for food contact applications. Additionally, Cardia Resins are certified compostable to AS4736, EN13432 and other international standards.

Mr. Mark Williams, Operation Manager of Superior Packaging, talked about the inputs of Cardia compostable resin which are in line with the expected requirement, delivering ensured outputs from renewable plant-based materials. He also enumerated the certifications of Cardia which includes US Food and Drug Administration, biodegradable as certified by Din Certco and compostable as per EN13432 using only non-GMO certified raw materials.

Mr. Stephen Walters, Sales Director of SECOS, expressed the excitement after working with Superior packaging for the new environmentally friendly products. He asserted such developments reflects the application of Cardia resins in environmentally friendly solutions and value addition to the customers by innovative packaging companies.

In April 2019, SES released an Investor Presentation in which food grade packaging was identified as a strategic market for business. It has been reported that global shift to renewables is picking up with a changing view towards traditional plastic and growing awareness about the non-degradability of plastic.

The International market has witnessed the banning of single use plastics coupled with the evolution of waste policies. The United States has drawn significant legislation across counties & municipalities along with many Asian and European countries acting to ban single use oil-based plastics. Companies & Brand managers are increasingly looking for renewable packaging solutions that enable them to meet corporate sustainability objectives. SECOS compostable & BioHybrid™ products enable these objectives to be met.

Biopolymer Sales Growth (Source: Company’s Investor Presentation, April 2019)

As per the prestation, SES is focused for sales growth on high-margin applications in Biopolymer resin, film & bags such as Brands, Pet Shop Distributors, Counties, Councils, Waste Companies & hygiene film customers along with an emphasis on BioHybrid™ & Compostable sales to large Corporates looking to meet ‘Sustainability Targets’ around renewables. The company witnessed 80% growth in Biopolymer (bags & films) sales in H1 FY19 and projected 40% - 50% year on year growth.


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