Business

British Polythene Industries (BPI) hopes to capitalise on global demand for biofuels following its £6m (US$12m) acquisition of the AT Films business of AT Plastics in Canada.

The purchase will give BPI a new range of products, including large agricultural bags for storing silage and grain. The stored grain is used as animal feed or as the raw material in the manufacture of biofuels.

BPI chairman Cameron McLatchie said: "We believe there is significant opportunity to expand sales of this product as global demand for biofuels increases."

AT Films makes polythene film products mainly for the North American horticultural and agricultural industries. The firm has 65 staff and factories at Edmonton and Westlock in Alberta, Canada.

In its last financial year to 31 December 2006, AT Films sold 12,500 tonnes of polythene film products, worth £18m.

BPI will announce its half-year results to 30 June 2007 on 3 September.