Bioplastics firms predict bright future

Polylactic acid (PLA) producer NatureWorks has downgraded its growth targets for the year from 50% to 10-15%, but remains hopeful a prompt end to the economic downturn will put the uptake of materials back on track.

Chief executive Marc Verbruggen said he was hopeful the US economy would start to pick up “before the end of the year”. “If you look at biopolymers, 10 years from now, the current period is going to be a hitch of a few months in a positive picture,” he told Packaging News.

Verbruggen said NatureWorks planned to announce the location of its second production facility – in Europe or Asia – within the next 12 months with a view to having it up and running by 2013.

Plans for a second plant to add to NatureWorks’ existing facility in Nebraska were announced earlier this month.

He said it was “a fairly conservative estimate” to believe that in seven or eight years there would be plants in North America, Europe and Asia. “It’s not out of the possibility, assuming the recession ends by the end of the third quarter.”

Verbruggen maintained that environmental drivers and legislative requirements as well as move away from foreign oil pointed to a bright future for bioplastics. “We’re starting to understand that oil is going to be a precious material,” he said.

The view that oil prices could go back up as the recession fades was picked up on by biodegradable packaging manufacturer Stanelco.

Chief executive Paul Mines said the pricing balance with oil would improve, but that the firm’s focus was on the functionality of the materials, and looking at legislative changes, for example the amount of biomass that should be included.

“What we are doing is working on improving characteristics of the materials, and areas we can extend the product into,” he said.

Mines is confident of growth in the sector but maintains it is not going to be achieved overnight. “I don’t think we’re going to see explosive growth, but there will be a long and progressive development in the region of 20% a year.”

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