As posted on Stockhouse
Global 8 Technology Partner Wheatware USA Signs Contract to Deliver Millions of Pieces of Biodegradable Flatware
9/21/2011 1:37:50 PM - Market Wire
Partnership Advances Cost-Effective, Renewable, and Biodegradable Alternative to Plastic Forks, Knives and Spoons
SAN DIEGO, CA, Sep 21, 2011 (MARKETWIRE via COMTEX News Network) --
Wheatware USA, Inc., a key Global 8 Environmental Technologies (PINKSHEETS: GBLE) portfolio partner in the BioOrganics arena, has signed a contract with a large US disposable cutlery distributor to provide tens of millions of pieces per month of flatware made with Wheatware's proprietary wheat-based biodegradable bioresin.
Wheatware USA, with offices and manufacturing facilities in Grand Island, Nebraska, offers products for various industries including food service, toy, music and housewares. Wheatware USA is an established leader in the development and production of innovative compostable bioresins products from surplus wheat.
Wheatware USA's 4th-generation crop-based, plastic-free products, which are made from compostable ingredients, are heat resistant (212 degrees F) and will first appear in a new style of cutlery (forks, spoons, knives), followed by other food service industry products.
Billions of pieces of disposable flatware are used and thrown away each month in the USA, and with over 70 billion pairs of chopsticks produced annually worldwide, there is a significant market opportunity and a capacity to reduce the environmental impact of billions of these products.
Some green products cost more than their plastic counterparts and rely on committed green consumers to be willing to pay this higher price. Wheatware anticipates this new line of biodegradable, high-quality products to be price competitive to plastic alternatives, thereby opening the door to a significantly broader market.
Wheatware claims that its strategic advantage is due to the combination of its price-competitive Generation 4 green products, its long-term contracts, and economies of scale, all while being manufactured in Nebraska, USA, with ingredients from Midwest surplus crops.
This contract alone is anticipated to result in over $10 million in sales revenue for Wheatware over the next 3 years, and more contracts are in the pipeline. This builds value for Global 8, which has a profit-sharing agreement with Wheatware and a minority holding in the company.
In addition to beginning production for this contract, Wheatware USA, Inc. is engaged in significantly increasing its manufacturing capacity. The acquisition process has begun for additional molds and production equipment for their Grand Island, Nebraska facility.