Cereplast, Inc. (NASDAQ: CERP), a leading manufacturer of proprietary bio-based, compostable and sustainable plastics, announced that it has entered into a distribution agreement with DMT Plasticolor to supply Cereplast bioplastic resins to the Croatian marketplace. This agreement is the fourth contract that Cereplast has entered in to in 2011 and reflects a continuing surge in demand for bioplastic resin across the pan-European marketplace.
Under the terms of the agreement, DMT Plasticolor will exclusively distribute Cereplast Compostables® Resins and Cereplast Sustainables? Resins to product and package manufacturers in Croatia. Cereplast's bioplastic resins enable DMT Plasticolor to supply its customers with plastic alternatives made from renewable resources including corn, wheat, tapioca, potatoes and algae. DMT Plasticolor will use the Cereplast Compostable 3000 film grade to produce bioplastic films for food packaging. This bioplastic film is designed to have a balance of puncture strength, toughness, and can be processed on existing blown film extrusion machines. Cereplast Compostable 3000 is a proprietary patented formulation, which includes Ingeo PLA and a copolyester from BASF. The agreement is for 100 tons of Cereplast resin per month for one year.
Founded in 2000, DMT Plasticolor is one of the leading suppliers of masterbatches and additives for the plastics industry in Croatia and the surrounding Adriatic countries. DMT Plasticolor has partnered with some of the largest resin suppliers in the world.
"We're proud to partner with DMT Plasticolor to help bring bioplastic materials to the Croatian market. This marks Cereplast's fourth distribution agreement in 2011, a clear indication of a soaring market in Europe for bioplastic resin," said Frederic Scheer, Founder, Chairman and CEO of Cereplast, Inc. "There are three main drivers for the surge in demand for bioplastics across Europe. First, consumer attitudes in Europe are favorable toward sustainable products and packaging; secondly, the composting structure in Europe is strong and developed; and, lastly, supportive governmental policies toward protecting and preserving the environment. These combined factors have collectively influenced exponential growth in bioplastic demand in the pan-European marketplace. Cereplast is well-positioned to meet and satisfy this growing demand in Europe."
"This collaborative agreement with Cereplast enables us to expand our product offering and strengthens our position as a leading distributor of masterbatches in the Croatian region,? said Darko Ivan Oroz, Director of DMT Plasticolor Source; Cereplast