World News

Australian manufacturer of biopolymers for packaging Plantic Technologies has expressed concerns the current state of the global economy could affect the uptake of its bioplastics products, after posting an AUD$9m (£4.1m) loss for 2008.

Sales revenue for the year rose 140% to AUD$3.6m, the Australian firm said, while the $9m annual loss was a 13% improvement on 2007, when the firm reported a loss of AUD$10.3m.

In a trading statement, Plantic said today (16 February) that weaker global economic conditions were expected to have a negative impact on the firm's performance in 2009, compared to current market expectations.

"While Plantic's growth is driven largely by continuing projects with major brand owners, the speed and rate of adoption of Plantic products may be affected by the overall state of the economy," it said.

Nonetheless, company directors "remain confident about the long-term prospects for the company and its technology".

It said it has strong cash reserves and the opening of a production factory in Jena, Germany, had led to increased consumer interest in Europe.

Plantic produces a corn starch-based plastic products and thermoforming resins which DuPont sells globally. In the UK, it counts Sainsbury's and Marks and Spencer among its customers.