Strong market demand for its sustainable retail carry bags has led Australian bioplastics manufacturer Cardia Bioplastics Limited to set 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 AUD 750,000 (USD 695,000) is funded using vendor finance over a 12-month period.
With a projected production capacity of 500 million retail carry bags, a capacity that is over four times greater than that of the current Cardia Bioplastics manufacturing plant in Nanjing, China, the new factory represents what Cardia Bioplastics Chairman Richard Tegoni called "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."
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.
According to Cardia Bioplastics Managing Director Frank Glatz, 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," he said.
"The Brazilian retail market is a major market for our Biohybrid carry bags," explained Cardia Bioplastics Latin America Managing Director João Paulo Mignot. "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."