Cardia Technologies Limited (Cardia or CNN) is pleased to announce that its recently acquired subsidiary Biograde Limited has been appointed the supplier of compostable shopping bags for Kmart stores.

The Biograde compostable bags are part of a trial being conducted by Kmart across the retailer’s 12 stores in South Australia commencing 20 March 2009. South Australian Minister for Environment and Conservation Jay Weatherill launched the customer trial, which is being conducted by Kmart to determine what kind of bags will be offered to customers after the South Australian Government ban on plastic checkout bags takes effect on 4 May 2009. During the Kmart trial, customers requiring a bag will select from compostable bags produced by Biograde or reusable paper bags at a charge of 15 cents per bag, or the coloured calico/cotton/jute fabric bags.

 

Biograde managing director Dr Frank Glatz said the company is privileged to be part of this important Kmart project. “We thank Kmart for this opportunity to have consumers genuinely trial our product in a situation of heightened awareness.” he said. “Our products have been extensively tested and are accredited by the major international testing authorities. We source our own raw materials, formulate and manufacture the resin and produce the bags ourselves, so we know that we are providing a product that performs to those standards. Most importantly, these compostable bags will decompose safely in the council waste management system,” Dr Frank Glatz said.

 

The Kmart trial further endorses Biograde’s position in this emerging market and follows Biograde’s appointment as exclusive supplier of biodegradable packaging to the Beijing 2008 Olympic and Paralympic Games. More recently, Biograde was awarded the Australian Chamber of Commerce “Australia-China Business Excellence Award”.

Cardia Technologies Limited acquired 100% of Biograde Limited in early March 2009.Cardia chairman Mr Pat Volpe said: “As a result of the merger, investors have an opportunity to invest in an ASX-listed company with a business at the early stage of its commercialisation cycle. Biograde is well positioned to capitalise on a global emerging market for renewable and sustainable plastic and packaging products.”

 

The global packaging market is estimated to be in the order of US$180billion, of which less than one percent is believed to be represented by renewable and sustainable packaging. However, the renewable and sustainable market share is expected to grow rapidly.

 

 

Corporately based in Australia and established in 2002, the company manufacturing plant is in Nanjing, China, and operational and sales offices are located in Australia, China, Germany, and soon in the USA. Products are marketed worldwide and its business growth is fuelled by the Government regulations and global trend towards more sustainable packaging.

Biograde has now established itself as a leading developer, manufacturer and marketer of sustainable packaging resins derived from renewable resources for the global plastics packaging industry. The company holds a strong patent portfolio for creating innovative products based on its proprietary technology and complies with international accreditation standards.