Italian Plastic Bag Application Decree Published and Enforcement Begins May
Cereplast Estimates Total Addressable Opportunity in Italy Alone for the
Company to Exceed $50 Million Based on Certain Provisions
EL SEGUNDO, Calif., April 3, 2013 (GLOBE NEWSWIRE) -- Cereplast, Inc.
(OTCQB:CERP) (the "Company"), a leading manufacturer of proprietary biobased,
compostable and sustainable bioplastics, is pleased to announce that the
Italian plastic bag Application Decree has been published in the Official
Journal, and sanctions for non-compliance with the legislation will be
enforced effective May 27, 2013. Management estimates, based on certain
provisions, that Cereplast's total addressable opportunity today for Italy
alone exceeds $50 million.
Cereplast estimates that the total addressable market for compostable blown
film grades in Italy exceeds $500 million. Currently there are 4 legitimate
competitors who produce compostable blown film that are predominantly based in
Europe, each varying in size from approximately $5 to $120 million in revenue.
Based on current competition, current production capacity, a full production
staff and sufficient working capital, the estimated market opportunity for
Cereplast exceeds $50 million. Manufacturing capacity at the Company's
Seymour, Indiana plant is currently 3000 tons/month. Based on current market
pricing of $4,500/ton, this plant is capable of producing in excess of $10
million per month at full capacity. The Cereplast Compostables® blown film
resins have a competitive advantage because they can be processed on
traditional equipment without requiring modifications, and they do not emit
Merchants must discontinue the use of traditional single-use plastic bags in
favor of bioplastic bags or other alternatives. The law prohibits the use of
OXO Biodegradable additives and requires Italian merchants to only use
compostable applications as defined by EN 13432 that Cereplast resins comply
with. The fines for non-compliance range between €2,500 and €25,000 and may be
increased for large quantities of bags. This plastic bag ban is the first step
by the Italian government to make Italy plastic-free.
Italian Minister of the Environment Corrado Clini stated, "This measure
normalizes the uncertainties that have hindered the development of the
production chain, promotes green chemistry and puts Italy in line with the
Cereplast Chairman and CEO Mr. Frederic Scheer commented, "Many of our
customers have been placing orders in preparation for this moment. We have
tested our products with approximately 50 blown film converters in Italy, and
now that the Application Decree has been published, we expect larger volume
sales to follow in the wake of this news. We are excited about this key
milestone and look forward to further serving the Italian marketplace with our
proprietary bioplastic resins."
About Cereplast, Inc.
Cereplast, Inc. (OTCQB: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.
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.
(310) 615-1900 x154
Alliance Advisors, LLC
Cereplast, Inc. Logo
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