Bioplastic Bags Gaining Momentum in India and Italy

Bioplastic Bags Gaining Momentum in India and Italy

El Segundo, California, April 23, 2013 (PBBR) - Bioplastic resins used in the manufacture of single-use grocery bags are gaining momentum in India and Italy according to Cereplast, Inc.

Cereplast, based in El Segundo, is receiving orders for its Cereplast Compostables® resins from the two countries in anticipation of stronger plastic bag regulations in both India and Italy.

According to Cereplast, the Supreme Court of India, along with the Central Pollution Control Board (CPCB), are looking toward more widespread solutions for the country's severe plastic pollution problems. India already has several regional plastic bag bans in effect.

Cereplast expects the growing anti-plastic climate in India, the world's third largest polymers consumer, could generate larger growth opportunities for the bioplastics industry in the country, specifically for compostable bioplastics. There is growing interest in India for Cereplast Compostables® resins, particularly for the blow molding grades that are suited for beverage bottles, as well as the blown film grades for single-use grocery bags and garbage bags.

India's polymer consumption accounted for 5.7% of the world's total in 2011, up from 3.5% in 2000. This level of consumption has its consequences. According to the CPCB, India generates 5.6 million metric tons of plastic waste each year, 40% of which remains uncollected and littered. Supreme Court Justices G.S. Singhvi and Kurian Joseph cited this as a "failure of governance at the grass-root level," and are working toward a comprehensive plastic waste strategy.

Frederic Scheer, Chairman and CEO of Cereplast, Inc. stated, "We are pleased to see the Supreme Court of India taking action toward solving its plastic pollution problems, and believe that widespread regulation of conventional plastics in the country would have a significant impact on the bioplastics industry as a whole. As the third largest consumer of conventional plastics in the world, countrywide legislation in India similar to what has been enacted in Italy would have even larger implications for bioplastics.

Over a period of several months, the Application Decree in Italy created burgeoning activity and interest in bioplastic resins, and we see a similar trend happening in India. The process may take longer, however, we are very pleased to be selling our Cereplast Compostables blown film resins in India.. ."

Italy Plastic Bag Ban

In Italy, the 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. About three weeks ago on April 3rd, Cereplast estimated 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 problematic fumes.

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 EU."

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 You may also visit the Cereplast social networking pages at, and


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