Cereplast, Inc. (Nasdaq:CERP), a leading manufacturer of proprietary biobased, compostable and sustainable plastics, today announced a three year distribution agreement with GAMA Plastik AS to supply bioplastic resin in Turkey. GAMA Plastik is projecting to purchase 200 metric tons per month in 2012 leading to significant increases in purchased resin in 2013. Cereplast anticipates generating revenue from the agreement approximately within the next 90 days.
GAMA Plastik is a leading plastic trader located in Istanbul, Turkey. They are one of the fastest growing plastics markets in the world and third in terms of market share in Europe behind Germany and Italy. GAMA Plastik has been in the plastic industry for 15 years and recently began producing compounds and specialty plastics for appliances and the automotive industry. Today, GAMA Plastik has capacity to produce 30,000 metric tons per year.
“Over the last 15 years we have developed industry expertise and a knowledgeable customer base regarding sustainable plastic raw materials. We are very excited to start this partnership with Cereplast and all our customers are ready to use our products containing Cereplast’s raw material. Turkey has a young and dynamic population and market strength in Europe. Cereplast’s name and quality in compostable and sustainable bioplastics will help both companies increase their market share,” stated Aydemir Esencan, CEO of Gama Plastics Group.
“We are pleased to reach another agreement in Turkey with an established and well respected corporation such as GAMA Plastik,” stated Frederic Scheer, Chairman and CEO of Cereplast, Inc. “Turkey represents a large and growing market opportunity for our biobased, sustainable plastics with 9% GDP growth and one of the fastest growing plastics markets in the world. Our agreement with GAMA Plastik is for three years with an initial target of 200 metric tons per month in 2012, with significant plans for tonnage growth in 2013 and beyond. We foresee this growth trend to continue over the next five years as demand for the product continues to increase and we look forward to working alongside with our new business partner GAMA Plastik over that period.”
Cereplast, press release, 2011-11-29.