Cardia Bioplastics has announced the results of the
strategic review of manufacturing from its proposed merger with Stellar Films
Group.
In a statement released yesterday, Cardia said the extra
production capacity provided by Stellar was a “key strategic benefit” of the
merge.
Cast film manufacturing at Stellar’s plants from Cardia’s
Compostable and Biohybrid resins was a benefit, as was Stellar’s sustainable release liner business in Malaysia, Akronn.
“With its three manufacturing plants located in Australia,
China and Malaysia the group is well positioned to supply the growing demand of
its expanding Asia Pacific customers,” a statement from Cardia read.
As part of its investment prioritising, the group would end financing for
film and bag manufacturing in Brazil. The location “continues to require
significant investment into equipment and working capital”.
The execution of a transaction document for Cardia and Stellar’s merger was signed on January 20, with Stellar shareholders to get 55
per cent and Cardia shareholders 45 per cent of the merged company.
The companies had previously partnered for about three years on Biohybrid films.
Image: foodproductiondaily.com