Plantic Technologies (Laverton North, Victoria / Australia; www.plantic.com.au), which manufactures starch-based biodegradable polymers for packaging, is to build a plant in Jena / Germany. Phase one of the project involves establishing a thermoforming operation in a newly leased factory by the first quarter of 2009. Once sufficient thermoforming volumes have been reached, phase two will involve installing rigid sheet production.

The Australian company will receive a grant for the project from the German government, which is expected to cover up to 45% of the capital investment. Plantic said phase one, using imported sheet, will enable rapid prototyping, customer trials and increased production capacity. Requiring an investment of EUR 1.2m before subsidies, this phase will accelerate the company’s entry into the European thermoforming market, it added.

Plantic already exports rigid sheet products from Australia to European thermoforming contractors and, finally, to packaging manufacturers for supply to brand owners in the UK and continental Europe.

Building a rigid sheet production facility will streamline the supply chain, eliminate sea freight and lower Plantic’s production costs, the company said. Brendan Morris, Plantic CEO, said: "The European plant will allow us to deliver greater value to our customers, brand owners and thermoformers through improved local development capability, lower costs, and greater service efficiency. Establishing Plantic's European manufacturing operation is another step towards enabling our European customers to receive products with an even smaller carbon footprint."