Application Decree in Italy Creates Larger Growth Opportunity for Cereplast
Date : 01/31/2012 @ 8:00AM
Source : GlobeNewswire Inc.
Stock : Cereplast, Inc. (CERP)
Quote : 0.94 0.03 (3.30%) @ 9:53AM
Application Decree in Italy Creates Larger Growth Opportunity for
Cereplast, Inc. (Nasdaq:CERP), a leading manufacturer of proprietary bio-based, sustainable plastics, today cited that the bioplastics industry in Italy could experience stronger growth rates due to the recent Application Decree signed by the Prime Minister on January 25, 2012.
Following legislation published by the Italian Parliament in December 2010, which banned the use of polyethylene for bag applications, the bioplastic industry has been anxiously waiting for the Applications Decree. Although the 2010 Law clearly defined the banning of polyethylene and encouraged alternatives such as bioplastic, the Application Decree further amends the details of the Law and implements strict enforceable conditions. The Decree is enforcing large and costly sanctions from Euros 2,500 to Euros 25,000 per infraction for companies that do not follow the legal requirements.
Mr. Frederic Scheer, Chairman and CEO of Cereplast, commented, "The Application Decree is a significant step forward for the entire industry as the Italian government has begun strictly enforcing non-petroleum based alternatives to the current market plastic applications. Specifically, Cereplast is one of only a few companies within the bioplastic industry that meets the proper standards for compostability, EN 13432. It is encouraging that in a short matter of time since the amendment we have received inquiries for our products from substantial new customers. We estimate the Italian market demand to be 250,000 tons per year of polyethylene according to Plastic News. Only a few companies have the technology and standards in place to serve this market with legitimate bioplastic alternatives that match the requirements set by this Decree."
The Decree deemed as "Extraordinary and Urgent Measures for the Environment," issued on January 25, 2012, amends previous plastic bag laws to require that single-use disposable bags meet and follow European standards for compostability (EN 13432:2002). This Decree will prevent the confusion created by various proposed alternatives that do not legitimately compost.
Cereplast compostable resins meet all stringent standards of compostability in the United States (ASTM 6400) and in Europe (EN 13432). Additionally, Cereplast recently announced receiving DIN-CERTCO certification for several blown film resins that all meet the new Italian standards.
About Cereplast, Inc.
Cereplast, Inc. (Nasdaq:CERP) designs and manufactures proprietary biobased, sustainable bioplastics which are used as substitutes for traditional plastics in all major converting processes - such as injection molding, thermoforming, blow molding and extrusions - at a pricing structure that is competitive with traditional plastics. On the cutting-edge of biobased plastic material development, Cereplast now offers resins to meet a variety of customer demands. Cereplast Compostables® Resins are ideally suited for single-use applications where high biobased content and compostability are advantageous, especially in the food service industry. Cereplast Sustainables™ Resins combine high biobased content with the durability and endurance of traditional plastic, making them ideal for applications in industries such as automotive, consumer electronics and packaging. Learn more at www.cereplast.com. You may also visit the Cereplast social networking pages at Facebook.com/Cereplast, Twitter.com/Cereplast and Youtube.com/Cereplastinc.
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Safe Harbor Statement
Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.
CONTACT: Cereplast, Inc.
Public Relations
Nicole Cardi
(310) 615-1900 x154
ncardi@cereplast.com
Investor Relations:
Alliance Advisors, LLC
Alan Sheinwald
914-669-0222
asheinwald@allianceadvisors.net
www.AllianceAdvisors.net |
