News

Asda has relaxed its exclusivity deal on the use of Stanelco’s Greenseal, enabling the packaging specialist to sell the technology elsewhere.

Stanelco also plans to roll out tests of the Greenseal technology with a food packaging firm within the next two months, following development delays.

The agreement with Asda is the result of a clause in Stanelco’s contract with the supermarket being waived. However, the UK supermarket will still use the Greenseal technology, once it is rolled out, to help it meet its sustainability obligations.

“This is an important development and shows the strength of our relationship with Asda,” said Martin Wagner, Stanelco’s chief executive officer.

“While all the major components of our agreement remain, Asda has agreed to relax the exclusivity of usage for non-Asda suppliers. A significant hurdle for us has been identifying packing lines that were exclusively for Asda usage. By removing this obstacle, we can now effectively offer our Greenseal technology to any user. This negotiation with Asda has been over a protracted period of time and we are grateful for their unwavering support.”

Greenseal is a radio frequency heat-sealing technology, which Stanelco claims is cheaper, more environmentally friendly and safer for consumers. It eliminates the need for a polyethylene layer, typically used to heat-seal food trays, enabling a single material to be used in tray manufacture, thereby reducing weight and making the trays recyclable.

Last month, Stanelco restructured its business in preparation for the roll-out of Greenseal (Packaging News, August 2006). The departure of COO Terry Robins to a consultancy role was one of 10 departures, although the only one at board level.

Stanelco released its interim results for the six months to April 30, 2006 last month, reporting a turnover of £2.6m.


Stanelco trading update
Stanelco posted interim results on August 17.

Highlights include:

- £0.9m in the bank

- an unused overdraft facility of £0.2m

- estimates that in the absence of funding or new revenue stream it can meet its cash requirements for three months