Company to Locate World’s Largest Bio-Plastic Production Facility in Indiana
- Release Date: Monday, December 17, 2007
- Dateline (city): SEYMOUR, Ind. (Dec. 10, 2007)
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Company to Locate World’s Largest Bio-Plastic Production Facility in Indiana
SEYMOUR, Ind. (Dec. 10, 2007)
– Cereplast, Inc. (OTCBB:CERP), a designer and
manufacturer of bio-based plastic resin, announced
today it will locate the world’s largest
bio-based plastic resin manufacturing and
distribution facility here, creating up to 200 new
jobs.
The Hawthorne, Calif.company, which designs, manufactures and distributes plastic resin based on plant starches instead of petroleum, will initially invest more than $7 million to equip an existing 100,000-square-foot industrial building in the Southern Indiana city.
"Cereplast is exactly the kind of business that we’re most interested in attracting. A unique company like this that has market-changing possibilities and the potential for rapid growth is a big win for Indiana," said Governor Mitch Daniels.
Founded more than six years ago, the company manufactures two families of plastic resins based on biopolymers and mixtures of plant starches. Its Cereplast Compostables™ product line, which has earned certification as biodegradable and compostable in the United Statesand Europe, replaces 100 percent of the petroleum-based additives found in traditional plastics with renewable, plant-based starches. Its Cereplast Hybrid Resins™ replaces half or more of the petroleum-based content in plastic resin with bio-based compounds such as cornstarch or tapioca starch.
"After a long search we decided to settle down in Indiana for this facility, in the heart of the Midwest, where we have easy access to our raw materials allowing us to reduce the carbon footprint of our operations by reducing transportation lines," said Frederic Scheer, chief executive officer and president of Cereplast.
Cereplast will begin hiring managers, supervisors, extrusion operators, warehouse specialists and maintenance technicians in early 2008. The company, which will continue to operate its suburban Los Angles headquarters and manufacturing center, plans to manufacture up to half a billion pounds of its bio-based plastic resin every year at the new facility once it reaches full capacity in 2010.
"Obviously, we are extremely pleased that Cereplast has selected Seymour," said Seymour Mayor Jim Bullard. "This company has tremendous potential, and we’re thrilled that they have decided establish their new Midwestern operation in Seymour. This investment shows confidence of their ability to grow in South Central Indiana."
The Indiana Economic Development Corporation offered Cereplast up to $665,000 in performance-based tax credits and up to $60,000 in training grants based on the company’s job creation plans. The State of Indianawill provide the City of Seymourwith a grant of up to $200,000 to assist in off-site infrastructure improvements needed to serve the new facility. The city will provide the company with property tax abatement and off-site infrastructure improvements. The Jackson County Industrial Development Corporation assisted in the effort.
The announcement of Cereplast’s decision to locate the new facility in Indianacomes two months after the company launched its new hybrid plastic resins. Plastics manufacturers can process Cereplast’s bio-based resins on conventional equipment, but the starch-based resins require less energy in the production process since they require significantly lower machine temperatures to process. Because the bio-based resins contain less petroleum products, they are also less susceptible to volatility in oil prices, according to Cereplast.
Plastics are a $378 billion annual industry in the United Statesthat employed more than 1.1 million in 2006, according to the Society of the Plastics Industry. The plastics industry employed nearly 60,000 Hoosiers in 2005.
About Cereplast Inc. ?Cereplast, Inc. (OTC BB: CERP) designs and manufactures proprietary bio-based, sustainable plastics which are used as substitutes for petroleum-based plastics in all major converting processes – such as injection molding, thermoforming, blow molding and extrusions – at a pricing structure that is competitive with petroleum-based plastics. For more information about Cereplast, visit www.cereplast.com.
About IEDC?The Indiana Economic Development Corporation is the state’s premier entity charged with economic development. The IEDC has a 12-member board chaired by Governor Mitch Daniels. Indiana Secretary of Commerce Nathan Feltman is also chief executive officer of the IEDC. For more information about IEDC, visit www.iedc.IN.gov.
The Hawthorne, Calif.company, which designs, manufactures and distributes plastic resin based on plant starches instead of petroleum, will initially invest more than $7 million to equip an existing 100,000-square-foot industrial building in the Southern Indiana city.
"Cereplast is exactly the kind of business that we’re most interested in attracting. A unique company like this that has market-changing possibilities and the potential for rapid growth is a big win for Indiana," said Governor Mitch Daniels.
Founded more than six years ago, the company manufactures two families of plastic resins based on biopolymers and mixtures of plant starches. Its Cereplast Compostables™ product line, which has earned certification as biodegradable and compostable in the United Statesand Europe, replaces 100 percent of the petroleum-based additives found in traditional plastics with renewable, plant-based starches. Its Cereplast Hybrid Resins™ replaces half or more of the petroleum-based content in plastic resin with bio-based compounds such as cornstarch or tapioca starch.
"After a long search we decided to settle down in Indiana for this facility, in the heart of the Midwest, where we have easy access to our raw materials allowing us to reduce the carbon footprint of our operations by reducing transportation lines," said Frederic Scheer, chief executive officer and president of Cereplast.
Cereplast will begin hiring managers, supervisors, extrusion operators, warehouse specialists and maintenance technicians in early 2008. The company, which will continue to operate its suburban Los Angles headquarters and manufacturing center, plans to manufacture up to half a billion pounds of its bio-based plastic resin every year at the new facility once it reaches full capacity in 2010.
"Obviously, we are extremely pleased that Cereplast has selected Seymour," said Seymour Mayor Jim Bullard. "This company has tremendous potential, and we’re thrilled that they have decided establish their new Midwestern operation in Seymour. This investment shows confidence of their ability to grow in South Central Indiana."
The Indiana Economic Development Corporation offered Cereplast up to $665,000 in performance-based tax credits and up to $60,000 in training grants based on the company’s job creation plans. The State of Indianawill provide the City of Seymourwith a grant of up to $200,000 to assist in off-site infrastructure improvements needed to serve the new facility. The city will provide the company with property tax abatement and off-site infrastructure improvements. The Jackson County Industrial Development Corporation assisted in the effort.
The announcement of Cereplast’s decision to locate the new facility in Indianacomes two months after the company launched its new hybrid plastic resins. Plastics manufacturers can process Cereplast’s bio-based resins on conventional equipment, but the starch-based resins require less energy in the production process since they require significantly lower machine temperatures to process. Because the bio-based resins contain less petroleum products, they are also less susceptible to volatility in oil prices, according to Cereplast.
Plastics are a $378 billion annual industry in the United Statesthat employed more than 1.1 million in 2006, according to the Society of the Plastics Industry. The plastics industry employed nearly 60,000 Hoosiers in 2005.
About Cereplast Inc. ?Cereplast, Inc. (OTC BB: CERP) designs and manufactures proprietary bio-based, sustainable plastics which are used as substitutes for petroleum-based plastics in all major converting processes – such as injection molding, thermoforming, blow molding and extrusions – at a pricing structure that is competitive with petroleum-based plastics. For more information about Cereplast, visit www.cereplast.com.
About IEDC?The Indiana Economic Development Corporation is the state’s premier entity charged with economic development. The IEDC has a 12-member board chaired by Governor Mitch Daniels. Indiana Secretary of Commerce Nathan Feltman is also chief executive officer of the IEDC. For more information about IEDC, visit www.iedc.IN.gov.