PLNT Plantic Tech.

 

TIDMPLNT 
 
RNS Number : 4469E 
Plantic Technologies Limited 
21 December 2009 
 

21 December 2009 
 
 
Plantic Technologies Limited ("Plantic" or "the Company") 
 
 
Manufacturing Collaboration with National Starch 
 
 
Trading Update 
 
 
MELBOURNE, Australia; INDIANAPOLIS, IN, USA - 21 December 2009 - Plantic 
Technologies Limited and National Starch LLC ("National Starch") today announce 
a collaboration to establish a site for the manufacture of Plantic  products in 
the USA. 
 
 
Key points: 
 
 
  *  Relocation of one of Plantic's existing proprietary manufacturing lines from 
  Australia to USA 
  *  A new manufacturing facility to be established in the USA in collaboration with 
  National Starch 
  *  Shortening of supply chain through integration of National Starch raw material 
  supply with the Plantic manufacturing process 
  *  Reduction in cost of Plantic materials 
  *  Closer collaboration between Research & Development and Manufacturing 
 
Background 
 
 
In October 2007, Plantic and National Starch signed a joint collaboration 
agreement to develop new starch technology and starch modification technology. 
This is facilitating the creation of new and enhanced functional properties for 
Plantic  resins and sheet which will broaden the performance spectrum of 
Plantic's products, thereby expanding potential markets by replacing certain 
non-biodegradable polymers and delivering new applications. 
 
 
The relocation of one of Plantic's existing proprietary manufacturing lines from 
Australia to the US, in collaboration with National Starch, will improve 
economies of scale and substantially shorten the supply chain, by integrating 
the supply of the key raw material, which it receives from its alliance partner, 
National Starch, with the Plantic manufacturing process. The overall effect will 
be to reduce the current cost of Plantic  materials. The facility will also 
bring R&D and manufacturing into closer collaboration. 
 
 
This project represents the next phase of Plantic's long-term manufacturing 
strategy. It will enable Plantic's partners that produce rigid sheet, injection 
moulding, blow moulding resins and flexible packaging resin to distribute them 
more effectively and at a lower cost. 
 
 
The project also enhances the close alliance that Plantic already has with 
National Starch, Plantic's main supplier of specialty modified starches. 
National Starch's natural polymer expertise and extensive experience in 
manufacturing, together with Plantic's expertise in bioplastics technology, 
provides a strong partnership that is expected to enhance further the product 
offering by reducing the costs of Plantic  resins. 
 
 
According to Plantic's CEO, Brendan Morris, "The manufacturing facility in 
collaboration with National Starch is expected to significantly reduce the 
current cost of Plantic  materials by integrating the two processes of 
manufacturing and key raw material supply. This significant progression of 
Plantic's manufacturing strategy allows us to deliver greater value to our 
customers, distributors and conversion partners." 
 
 
Mr Morris added, "The Company is also in discussions with partners and customers 
with a view to expanding market penetration, and anticipates making further 
announcements on these discussions early in the New Year." 
 
 
Neil Grimwood, Vice President of Strategy for National Starch , commenting on 
the establishment of Plantic's manufacturing facility in conjunction with 
National Starch commented, "We believe Plantic's expansion in the U.S. opens the 
doors to the North American biopolymers marketplace and will enhance the use of 
starches to create sustainable plastic alternatives." 
 
 
Trading Update 
 
 
Plantic has over 40 major customer projects and trials in various stages of 
progress for rigid sheet, injection moulding and flexible film applications 
across Australia, Europe and the US. The conversion of projects into sales has 
continued to be affected by the slower than anticipated recovery from the global 
economic downturn throughout 2009 and as a result Plantic's revenue will be 
lower than expected. However, Plantic expects the loss from operations and cash 
at year end to be in line with current expectations, as a result of the benefits 
of cost reduction programs implemented early in the year and careful cash 
management. 
 
 
Looking forward to 2010, Plantic is optimistic that the enhanced competitiveness 
resulting from the integration of raw material supply and manufacturing will 
have a beneficial impact on sales, and Plantic expects 2010 result to be in line 
with previous guidance. 
 
 
FURTHER INFORMATION: 
 
 
+------------------------------------+----------------------------------------+ 
| Plantic Technologies:              |                                        | 
+------------------------------------+----------------------------------------+ 
| Brendan Morris, Chief Executive    | +61(0)3 9353 7983                      | 
| Officer                            |                                        | 
+------------------------------------+----------------------------------------+ 
|                                    |                                        | 
+------------------------------------+----------------------------------------+ 
| Nomura Code Securities Limited:    |                                        | 
+------------------------------------+----------------------------------------+ 
| Juliet Thompson                    | +44 (0)20 7776 1204                    | 
+------------------------------------+----------------------------------------+ 
|                                    |                                        | 
+------------------------------------+----------------------------------------+ 
| Pelham PR:                         |                                        | 
+------------------------------------+----------------------------------------+ 
| Archie Berens                      | +44 (0)20 7337 1509 / +44 (0)7802      | 
|                                    | 442486                                 | 
+------------------------------------+----------------------------------------+ 
 
 
 
 
About Plantic Technologies Limited 
 
 
Plantic Technologies is based in Australia, where its head office, principal 
manufacturing and research and development facilities are located. The company 
also has sales offices in Germany and the United Kingdom, and employs 
approximately 50 people internationally. 
 
 
Plantic's novel polymer manufacturing technology is based on the use of 
high-amylose corn starch, a material derived from annual harvesting of 
specialized (hybrid) corn. The unique chemical and film-forming properties of 
this type of cornstarch allow for development of a range of applications across 
conventional plastics markets. In addition to being renewably sourced, users can 
take advantage of excellent end-of-life properties such as biodegradability and 
compostability. 
 
 
Plantic has several families' patents covering its technologies, formulations 
and applications. The Company's objective is to commercialise its plastic 
technologies across a broad range of applications, with a particular focus on 
the packaging industry. Plantic has offices in Melbourne Australia, Jena Germany 
and Boston USA. 
 
 
For more information visit the company's website www.plantic.com.au 
 
 
About National Starch 
 
 
National Starch, a leading global supplier of specialty starches, develops, 
makes and markets nature-based, functional and nutritional ingredients. Its 
specialty biomaterials deliver sensorial, performance and processing benefits 
along with improved levels of sustainability in a wide array of consumer goods 
and industrial applications. National Starch's deep understanding of 
technologies, customers, and product design allows it to develop new synergies 
by connecting ideas and people from around the world. 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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