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8-K - FORM 8-K - HONG YUAN HOLDING GROUP | c16357e8vk.htm |
EX-99.2 - EXHIBIT 99.2 - HONG YUAN HOLDING GROUP | c16357exv99w2.htm |
Exhibit 99.1
CEREPLAST TO ESTABLISH ITALY-BASED BIOPLASTIC MANUFACTURING PLANT
New Location to Create Efficiencies and Enable Continued Expansion into European Market
Project to be Financed by Local Italian Financial Institutions
Plant Expected to Have 100,000 Tons of Capacity
Project to be Financed by Local Italian Financial Institutions
Plant Expected to Have 100,000 Tons of Capacity
EL SEGUNDO, Calif., May 2, 2011 Cereplast, Inc. (NASDAQ: CERP), a leading manufacturer
of proprietary biobased, compostable and sustainable plastics, today announced it is establishing a
bioplastics manufacturing plant in Assisi (Cannara), Italy.
This is a significant step in Cereplasts evolution, said Frederic Scheer, Chairman and CEO of
Cereplast. The development of this plant in Italy reflects Cereplasts continued commitment to
providing bioplastic resin to meet soaring demand for this material in the European market. After
exploring possible sites in several countries in Europe, we identified a central location in Italy,
where we have established several strong distribution relationships. In addition, the Italian
government has expressed its strong support for the development and use of bioplastics, therefore
it was the obvious location choice for our plant.
Scheer continued, Currently, 85% of our business is based in Europe. We believe this new plant
will create efficiencies, reduce transportation costs and minimize risks in our business. The
market for bioplastics in the European Union is expected to be one million tons by 2014 according
to European Plastics. This new manufacturing facility will position Cereplast to effectively serve
that expanding market.
The plans for the plant include a total capacity of approximately 100,000 tons, or about 220
million pounds. This is expected to occur in several phases: the first phase of 50,000 tons is
expected to start manufacturing in late-2012, and the second phase of 50,000 tons is planned to
begin manufacturing in mid-2013, based on market demand. The plant will be developed on the site
of a former industrial plant and is expected to be approximately 125,000 square feet in size. The
site is currently permitted as a chemical site, which will enable the company to benefit from
existing infrastructure.
The plant will be owned and run by Cereplast Italia SPA, a wholly owned subsidiary of
Cereplast, Inc. This venture will be financed through local and regional financing with Italian
institutions and is expected to receive subsidies from various state and local agencies.
The initial investment is estimated to be about
10 million to 12 million.
Umbria is centrally located in central Italy and has a worldwide reputation for being one of the
most respectful regions in terms of the natural environment. As such, Cereplast is the perfect
company for our region with their focus on green technology, said Vinicio Bottacchiari, Executive
Director of Sviluppumbria, a regional agency. The new plant when completed will bring about 150
new jobs to our area and we are very excited to have Cereplast as part of our community.
Conference Call
The company will discuss this development in more detail on its first quarter 2011 conference call
and live webcast on May 16th, 2011 at 2:00 p.m. PDT (5:00 p.m. EDT). To join the live
conference call, please dial the following number five to ten minutes prior to the scheduled
conference call time: 877-312-5508. International callers should dial 253-237-1135. A live webcast
and archive of the call will also be available on the Investor Relations section of Cereplasts
website at www.cereplast.com.
About Cereplast, Inc.
Cereplast, Inc. (NASDAQ: 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. On the cutting-edge of bio-based plastic material
development, Cereplast now offers resins to meet a variety of customer demands. Cereplast
Compostables® Resins are ideally suited for single use applications where high bio-based content
and compostability are advantageous, especially in the food service industry. Cereplast
Sustainables Resins combine high bio-based content with the durability and endurance of
traditional plastic, making them ideal for applications in industries such as automotive, consumer
electronics and packaging. Learn more at www.cereplast.com.
Safe Harbor Statement
Matters discussed in this press release contain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. When used in this press release, the words
anticipate, believe, estimate, may, intend, expect and similar expressions identify
such forward-looking statements. Actual results, performance or achievements could differ
materially from those contemplated, expressed or implied by the forward-looking statements
contained herein. These forward-looking statements are based largely on the expectations of the
Company and are
subject to a number of risks and uncertainties. These include, but are not limited to, risks and
uncertainties associated with: the impact of economic, competitive and other factors affecting the
Company and its operations, markets, product, and distributor performance, the impact on the
national and local economies resulting from terrorist actions, and U.S. actions subsequently; and
other factors detailed in reports filed by the Company.
Contacts:
Cereplast, Inc.
Nicole Cardi
(310) 615-1900 x154
ncardi@cereplast.com
Nicole Cardi
(310) 615-1900 x154
ncardi@cereplast.com
Lippert Heilshorn & Associates
Tim Dien/Mary Magnani
(415) 433-3777
tdien@lhai.com
Tim Dien/Mary Magnani
(415) 433-3777
tdien@lhai.com
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