Stanelco, the biodegradable food packaging innovator, has issued a warning that its second half losses are likely to be marginally higher than those incurred in the first half year.
The Company indicates that as its portfolio of products moves closer to commercialisation, the costs of this have increased relative to those experienced in the first half of the
financial year. "As a result, the Company now expects that the loss for the six
months to 31 October 2006 will moderately exceed that of the first half."
The Company added that it is making good progress in discussions on the financing options
available to it.
The market for biodegradable packaging and products such as carrier bags is hotting up as many of the giants in retail such as Tesco and Asda vie with each other for green credentials.
Sainsbury
Most recently Sainsbury stated that it was introducing biodegradable packaging for 500 of its own-brand products. Sainsbury estimates that this will save around 3,500 tonnes of plastic packaging, plastic being a product of oil which is a non-renewable resource.
Biodegradable packaging produced from maize, sugar-cane or starch and under the right circumstances can be degraded successfully in a centralised composting facility or through home composting.
Justin King, chief executive of Sainsbury's said:-
"It would be positive to think that in the near future customers can halve their household waste by composting, as well as contributing to tackling major environmental issues."
Greenseal technology
Stanelco is working with ASDA which supports the company's GreenSeal technology as it pursues its own business objective of meeting sustainability commitments.
The 'partnership' with ASDA was announced on 24 March 2005 and was extended for a further 12 months, other than the exclusivity arrangement with ASDA which has been waived.
According to Stanelco, radio frequency (RF) sealing develops fusion temperature within the material using alternating high frequency electromagnetic energy. This technology replaces the need for a polyethylene (PE) sealing layer within the laminate, thus making the pack recyclable (no mixed plastic types) and saving energy. GreenSeal technology is said to replace traditional thermal sealing processes, giving a better environmentally outcome.