Following its proposed merger with Australian films specialist Stellar Films (Deer Park, Victoria; www.stellarfilmsgroup.com) – see also Plasteurope.com of 27.11.2014 – sustainable resins producer Cardia Bioplastics (Melbourne / Australia; www.cardiabioplastics.com) has announced the results of a strategic review. As part of the reorientation, the company has decided to discontinue its film and bag production in São Paulo / Brazil. The EUR 519,000 purpose-built plant only started operations in September last year (see Plasteurope.com of 14.08.2014). “The Brazilian operation continues to require significant investment into equipment and working capital to deliver on existing sales opportunities for finished products such as retail carrier bags,” Cardia said, adding that it nevertheless remains committed to the Brazilian market and will continue supplying and distributing its “Biohybrid” compostable resins.

The Australian company has instead identified Asia Pacific as the key region where it plans to raise its market share. “The group will prioritise its financial resources to ensure production output is optimised in this growth region,” Cardia said. The merger with Stellar will give it access to the latter’s Malaysian production plants, where it plans to invest to raise blown film extrusion and bag making capacity. Financial details were not disclosed, although Cardia said it also intends to make a similar “limited capital investment” in its own facility in China. The company last year expanded its operations in Nanjing by moving to an upgraded facility – see Plasteurope.com of 07.07.2014.

The merger with Stellar will also give Cardia access to the former’s Akronn Industries (Nilai, Negeri Sembilan / Malaysia; www.akronn.com) joint venture, which will silicone coat “Biohybrid” cast films and convert them to film release liners for the personal care and hygiene industries, the Australian group said. Aside from Malaysia and China, the combined Cardia-Stellar will also have manufacturing plants in Australia.