News

Plantic Technologies, the Australian manufacturer of biopolymers for packaging, may miss its targets for 2008 despite a strong order book.

In a trading update issued today (9 July) the company said its performance was being hampered by an unnamed large brand owner who has committed to buy its material but has delayed the placing of its order, meaning that it will not be fulfilled in this calendar year.

It said a second factor had been the growing strength of the Australian dollar, driven by the continuing resources boom.

In a statement the company said: "The directors have good cause to be optimistic about the prospects for 2009 and beyond. The forward order book for the second half of 2008 is very strong. Total volumes sold in 2008 are still expected to be significantly higher than in the previous year."

The company added that its sales were underpinned by the long-term distribution agreement with DuPont, which was extended to cover the Japanese market in April.

Plantic's polymer manufacturing technology is based on the use of high-amylose cornstarch, a material derived from annual harvesting of specialised hybrid corn.