European Union Environmental Commission Supports National Plastic Bag Ban and
Legislation Could Create $4 Billion in Annual Bioplastics Industry Revenue
Seymour, Indiana, Oct. 28, 2013 (GLOBE NEWSWIRE) -- Cereplast, Inc. (OTCQB:
CERP) (the "Company"), a leading manufacturer of proprietary biobased,
compostable and sustainable bioplastics, today is providing an update on the
European Union (EU) Environmental Commission's (the Commission) legislation
regarding the use of single-use disposable plastic bags on the continent. In a
recent document, the EU Environmental Commission stated that they support an
amendment to the Packaging and Packaging Waste Directive 94/62/EC (PPWD) that
would require all member states of the EU to ban or tax the use of
conventional plastic carrier bags that are 50 microns or less. The law is
scheduled to go into effect on November 15, 2013, and member states will have
two years to comply. This legislation could create demand for 1 million tons
per year of bioplastic alternatives to conventional plastic bags, or
approximately $4 billion in potential revenue annually.
EU Member states will have the option of imposing outright bans or taxing the
use of single-use plastic carrier bags. The Commission aims to reduce the
consumption of conventional plastic bags to 20% of current levels. Many EU
states already ban or tax the use of plastic bags including Italy, Denmark,
Ireland and Bulgaria. Retailers in France, the Netherlands, Germany, Portugal
and Hungary have already begun voluntarily charging a fee for conventional
plastic bags. This legislation will require all EU member states to take
action to drastically reduce plastic bag consumption in their respective
The Company is expecting the Italian legislation to become effective following
the confirmation of this Directive. The surge in demand, which the Company has
anticipated, appears to be imminent. As the Company previously reported, it
estimates the annual revenue potential from Italy could exceed $50 million,
subject to sufficient access to raw materials and the necessary working
capital to finance the growth. The Company currently has the necessary
manufacturing capacity in its state-of-the-art facility located in Seymour, IN
to serve up to 40,000 Tons or approximately $125 million in annual revenues
running at full capacity.
Mr. Frederic Scheer, Chairman and CEO of Cereplast commented, "This
legislation will create tremendous revenue opportunities for both the
bioplastics industry as a whole, and for Cereplast specifically. The Company
is poised to take advantage of the increased demand for bioplastic resins in
the EU, and is already working with several customers in Italy, Germany,
France and Spain in preparation for this EU-wide change. We anticipate a
substantial revenue impact in 2014 as a result of this legislation."
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.
CONTACT: Cereplast, Inc.
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