Earthshell and Green Earth invest in new packaging equipment
major investment programme in new equipment to allow Green Earth to
expand its production of EarthShell plates and bowls.
Green Earth Packaging and EarthShell Corporation have announced a major investment programme in new equipment to allow Green Earth to expand its production of EarthShell plates and bowls.
GEP has committed $10 million (€10.2m) dollars for orders of new manufacturing equipment to be installed at its new permanent US facility, which will be located in Texas. GEP currently has manufacturing responsibility for the EarthShell facility in Goleta, Canada and has begun distribution of plates and bowls to meet demand in certain government, university and mass merchandising market segments.
Initial production units are projected to be tested and commercially ready by the end of this year, with the Texas facility scheduled to be in production by the second quarter of 2003.
EarthShell has granted GEP access to select US market segments, including federal, state and local government, drug & health food stores as well as retail and mass merchandising, such as Wal-Mart. It has also set GEP specific sales deadlines to meet.
The new facility will have a minimum of four new production lines for 9-inch plates and 12-ounce bowls. The equipment is being ordered through licensed EarthShell equipment manufacturers and will be delivered with performance guarantees, the companies said. These lines will have the ability to produce approximately 1 billion plates and bowls per year. Building on its current sales, GEP has said it is committed to ramping up to minimum US target sales of $25 million per year by the fourth quarter of 2003.
"Our investment of significant capital is based on our analysis that a viable and lucrative market exists for environmentally preferable food service disposables such as EarthShell Packaging," said Datuk Dr Philip Ling, chairman of Green Earth Packaging.
"GEP understands market trends and the growing demand for sustainable products. This announcement demonstrates the continued commitment of Green Earth Packaging to the commercialisation of the EarthShell technology," said Vincent Truant, president and chief operating officer of EarthShell Corporation. "GEP is dedicated to our joint progress in accelerating the availability of EarthShell Packaging products in the marketplace."
EarthShell packaging is designed with the environment in mind. Developed in consultation with environmental experts, its products reduce the environmental burdens of rigid food service packaging through the selection of raw materials, processes and suppliers. The products are made primarily from natural limestone and potato starch.
