Cereplast, Inc. is focused on developing, manufacturing, and marketing bio-based resins purposed to either supplement or even replace conventional petroleum-based plastics. The Company’s resins are made from renewable resources including corn wheat, tapioca, and potato starches.
The company markets two different families of bio-based resins, which can be used in an array of converting applications. While the Cereplast Compostables family consists of renewable and ecologically sound substitutes targeted for single-use disposables, Cereplast Hybrid Resins are bio-based and targeted for more durable and reusable applications.
The global plastics industry is currently estimated at 250 million tons and is growing at a steady rate of 5% each year. According to BCC Research, the global market for bio-plastics was 541 million pounds in 2007 (0.25 million tons) and is projected to increase 17.3% each year and go beyond 1.2 billion pounds (0.55 million tons) by 2012.
The analyst who completed the report concluded stating, “We are initiating coverage of Cereplast Inc. with a Speculative Buy rating and a $1.12 price target. Given its innovative technology and the environmental benefits of its bio-based resins, we think the Company is well-positioned for triple-digit revenue growth and significant market share gains in the years ahead.”
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