The factory is expected to deliver a production capacity of 500 million retail carry bags per year, which is four times greater than Cardia Bioplastics manufacturing plant in Nanjing, China.
“This represents a key milestone in the implementation of our business strategy to establish a finished products division with its own dedicated resources and manufacturing capability in key markets,” said Richard Tegoni, chairman, Cardia Bioplastics.
“The vertical integration from Cardia Biohybrid resins to Cardia Biohybrid films and bags ensures product quality, control of supply, improved margins and enhanced cost structures that underpin Cardia’s global growth strategy.”
Cardia’s Brazilian bag making capacity equates to less than 1% of the Brazilian retail carry bag market. It has already secured contracts with Brazilian retailers Ricoy Supermercados and Drogaria Araujo.