News

Plantic Technologies' share price soared by 10% after the Australian developer of plastics packaging made from renewable resources announced a major deal with DuPont.

The firms will jointly develop new resins and sheet materials, based on high-amylose corn starch, for cosmetics, personal care and food products.

In addition, Plantic's existing products for industrial and food packaging will be sold by US-based DuPont under its Biomax brand in North America, extending Plantic's market beyond Australia and Europe for the first time.

UK customers for these products include Marks & Spencer, Cadbury Schweppes and Nestlé.

DuPont will also market future products globally outside Australia and New Zealand.

DuPont's global business director for sustainable packaging materials, Shanna Moore, said the collaboration was part of a strategy to "double revenues from non-depletable resources to $8bn (£4bn)" by 2015 using its own R&D and through deals with partners such as Plantic.

Plantic chief financial officer Brendan Morris said the agreement would broaden the market for the firm's products and give it access to the sales and marketing resources of a major global company.

Morris would not reveal projected sales volumes, but analysts suggested that sales would increase to £2.9m (A$6.6m) for the full year from £434,000 in the six months to 30 June 2007.