Stanelco PLC Acquires Biotec Group
Primed to deliver a revolution in biodegradable packaging
ORLANDO, FL - Stanelco Inc. is positioned to launch Starpol 2000, a completely new plasticizer-free thermoplastic material. It is completely biodegradable, possesses excellent gas barrier properties, is thermoformable, and is suitable for both food and produce trays in addition to other food packaging applications. The target price is $1.50 per pound and, in conjunction with Stanelco's revolutionary GREENSEAL Tray-lidding and thermoforming technology, will for the first time offer a biodegradable price-competitive solution to compete with traditional plastic materials used in the food industry.
Stanelco Inc. is the US subsidiary of the Stanelco Group (LSE: SEO) a company with its roots in using and developing radio frequency (RF) applications. Over the past two years it has been moving into environmentally sustainable packaging solutions. Its latest acquisition, subject to shareholder approval, is for Biotec Holding GMBH and subsidiaries (Biotec), Germany, from E. Khashoggi Industries LLC, California, for a total of $25 million (U.S.) payable over a 24 month period.
Biotec is one of the world's leading exponents of starch technology. It has a considerable intellectual property portfolio, including many patents that extend to uses in packaging, pharmaceutical and edible applications. It also has ranges of products that are ready for commercialization within the food and beverage industries.
Biotec complements Stanelco's RF technology, its water-soluble and biodegradable technology at Adept Polymers and the packaging design and development skills of Aquasol, all subsidiaries of Stanelco, and gives greater access to world markets for the entire Stanelco Group. Stanelco is eager to unlock Biotec's potential in conjunction with leading supermarkets to supply mass-markets.
The starch products from Biotec are currently used by Stanelco in the following projects:
- Starpol(TM) starch blend films used in Cradlewrap air bubble packaging
- Food trays and pellets for food trays
- Air cushion packaging
- Edible packaging
- Film for edible capsules
Natural starch is one of the lowest cost biodegradable, compostable and replenishable materials. Biotec has a unique portfolio of products including thermoplastic starch (TPS), which enables the use of environmentally responsible material in place of petro-plastics. Stanelco's RF sealing and welding technology can be used to process starch polymers without the degradation or cross-linking caused by other methods such as thermal processing, which can render the material unsuitable for food and pharmaceutical applications.
"This exciting acquisition is the next piece in the jigsaw that will enable Stanelco to become one of the world's leading exponents of economically viable, alternative, environmentally responsible packaging method solutions," said Ian Balchin, CEO of Stanelco. "It has become apparent that with the rise in oil prices, the cost of petroleum-based packaging materials is inevitably increasing faster than alternatives making them increasingly attractive. The replenishable ingredients of Starpol 2000 ensure a stable price that will, if anything, reduce upon volume uptake. We intend to showcase this breakthrough product with all of our potential customers for Greenseal."
"I am also pleased to report that the second trial for GREENSEAL with Wal-Mart subsidiary ASDA has moved into the retail phase, having passed the stability (shelf-life) test with flying colors. The third and final trial is commencing this week," Balchin said. "As announced this past May 23, Stanelco has taken its first formal commercial order from a dedicated ASDA supplier, and is preparing itself for negotiations for further orders."
Source: Stanelco Inc.