Jul 27 2005
Stanelco, the RF (radio frequency) applications group is pleased to announce that it has received a conditional commitment from SP Metal its Joint Venture ("JV") partner in Biotec for an annual purchase of approximately 10,000 metric tonnes of Biotec's biodegradable pellet worth in excess of e20m per year.
As a result, Stanelco and SP Metal have agreed to increase Biotec's production capacity of biodegradable pellets to 12,000 metric tonnes by an investment programme in new processing equipment valued at e4.5m. Full production is anticipated within six months.
The purchase of Biotec Holdings and the JV with SP Metal is subject to shareholder approval.
Ian Balchin, CEO of Stanelco plc commented:
"We are delighted to receive this commitment from SP Metal which demonstrates that the market for starch based polymers is set for significant growth. We look forward to the prospect of completing the acquisition and JV agreement in the next few weeks."
A fuller announcement will follow when specific details of the order are finalised.