The Australian champion of bags that do better for the environment, Cardia Bioplastics, is setting up its own film and bag manufacturing plant in São Paulo, Brazil, to meet a surge in demand there.
It has already leased its new purpose-built facilities and will begin production in September 2014. The production machinery costing AU$750,000 is funded using vendor finance over a twelve month period.
The new facility will have a production capacity of 500 million retail carry bags per year.
In the last couple of years, Cardia Bioplastics has established itself as a reliable supplier of quality environmentally preferred retail carry bags to the Brazilian market. Importantly, it has been able to secure annual supply contracts with two high profile Brazilian retailers, Ricoy Supermercados and Drogaria Araujo. After Cardia exhibited at Brazil's APAS 2014 Retail Fair, significant orders were placed for its retail carry bags.
That show of confidence in the quality and high demand for Cardia products triggered the new growth plan.
The new facility will have a capacity more than four times greater than that of the current Cardia Bioplastics manufacturing plant in Nanjing, China. Cardia's Brazilian bag making capacity equates to less than 1% of the Brazilian retail carry bag market.
Cardia Bioplastics Latin America managing director, João Paulo Mignot stated, "We are thrilled with our new manufacturing facility. The Brazilian retail market is a major market for our Biohybrid carry bags. With our own production coming on stream, we are now poised to deliver the increasing orders that we have been receiving, while further growing the business.
"Following the success at the APAS Fair in conjunction with regular sales through established channels, we have confidently committed to establishing our own production in Brazil to meet demand. Brazil is a rapidly growing market with keen interest and orders from retailers for Cardia Biohybrid bags."
Cardia Bioplastics managing director, Dr Frank Glatz added, "The establishment of Cardia's own production facilities in Brazil could not have come at a better time. We have seen strong growth in demand for Cardia Biohybrid bags – environmentally preferred bags that use less oil, have a lower carbon footprint and are heavy metal free, driven by consumer, retailers, brand owners, municipalities and government."
