The company has signed a deal to relocate one of its manufacturing lines to the premises of Indianapolis-
National Starch is Plantic's primary supplier of specially modified starches, which are used in the production of the firm's corn starch-based bio-plastics. The two firms have been working together since October 2007, when they signed a joint collaboration deal to develop new starch and starch modification technology, which acts as the basis for creating biodegradable polymers.
Plantic's chief executive, Brendan Morris, said that the new manufacturing facility was expected to "significantly reduce the current cost of Plantic materials by integrating the two processes of manufacturing and key raw material supply".
The reduced costs could ultimately be passed on to the firm's 40 customers in Australia, Europe and the US, which are using its rigid sheet, injection moulding, blow moulding and flexible packaging resin in a range of projects and trials.
Morris admitted that the company's commercial operations had been affected by the "slower than anticipated recovery" from global recession, and that as a result fiscal 2009 revenues would be lower than expected.
But he added that losses from operations and cash in the bank would be in line with forecasts due to cost reduction programmes initiated earlier in the year and careful cash management.
