News

Plantic Technologies, the Australian manufacturer of biopolymers for packaging, can sell its thermoformed sheets as a compostable material in the US, after it was accredited by the Biodegradable Products Institute.

Plantic's share price rose 13% to 44p this morning (28 February) following the announcement, although it has lost half of its value since last October.

Packaging made from Plantic sheet, which DuPont will market under its Biomax range, will be able to display a logo that certifies a product will disintegrate and biodegrade safely when composted in a municipal or commercial facility.

Plantic, which is made from high-amylose corn starch, also complies with Food and Drug Administration regulations on food contact materials, and the company has been granted the patent on the thermoforming formulation.

Chief executive Brendan Morris said the certification gave Plantic's customers the "competitive advantage of a unique innovative product".

The agreement between Plantic and DuPont to extend the company's sales to outside of Europe and Australia was announced last September. The companies also agreed to jointly develop new resins and sheet materials.

The company floated on the Alternative Investment Market of the London Stock Exchange in May 2008.