Casey Container Corp. (OTCBB: CSEY) today announced the receipt of its first purchase order from a U.S.-based bottled water company providing for Casey to supply about 250,000 biodegradable preforms on a weekly basis over a year period, which will be used in the manufacture of biodegradable plastic bottles.
Casey Container holds a license to EcoPure®, a revolutionary second-generation proprietary and organic additive, which -- once added to a resin used to produce plastic bottle preforms -- renders the plastic biodegradable. The Company's biodegradable preforms are made of PET, HDPE and other conventional polymers, thus offering the same performance and cost effective advantages of conventional plastics. By introducing EcoPure® into the manufacturing process, Casey expects to produce a truly biodegradable PET, HDPE and other polymer products that break down into harmless bio-gases and bio-mass over time in anaerobic environments like landfills.
Demand for degradable products in the United States is projected to increase 16.6 percent annually through 2014, due in part to increased consumer demand for environmentally friendly packaging, according to an August 2010 report by The Freedonia Group. According to the Container Recycling Institute, Americans alone buy an estimated 34.6 billion single-serving (1 liter or less) plastic water bottles each year, of which nearly eight out of ten end up in a landfill or incinerator. According to RecyclingFacts.org, it takes up to 700 years for conventional plastic bottles in landfills to even begin to biodegrade.
Terry Neild, Chairman of Casey Container, stated, "This first order for our biodegradable preforms represents a significant milestone for our Company and one that will allow us to begin realizing immediate revenue from our new preform and bottling manufacturing facility upon becoming operational in 2011. Over and above this inaugural order, we are also in advanced discussions and negotiations with a wide range of companies interested in taking delivery of biodegradable preforms and/or bottles for their respective bottling and packaging requirements. We believe we can be in position to deliver approximately 35 million preforms and bottles in 2011, given that we meet our anticipated production ramp-up schedule."