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 states.
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.
Public Relations
Nicole Robertson
812.220.5400 X1013
nrobertson@cereplast.com
Investor Relations:
Alliance Advisors, LLC
Valter Pinto
914-669-0222 x201
valter@allianceadvisors.net
www.AllianceAdvisors.net