New Rail Spur in Seymour, Indiana Extends Freight Access for Cereplast
Date : 08/03/2010 @ 8:05AM
Source : Business Wire
Stock : Cereplast, Inc. (CERP)
Quote : 3.2 0.0 (0.00%) @ 2:05AM
New Rail Spur in Seymour, Indiana Extends Freight Access for Cereplast
Cereplast (MM) (NASDAQ:CERP)
Intraday Stock Chart
Today : Tuesday 3 August 2010
Cereplast, Inc. (NASDAQ: CERP) a leading manufacturer of proprietary bio-based, sustainable plastics, announced today that it will soon have access to rail freight service at its recently opened facility in Seymour, Indiana.
The rail spur, which is located at Seymour’s Eastside Industrial Park, will enable Cereplast to bulk ship its proprietary biodegradable plastic resins to its growing client base across the United States, and directly to U.S. port cities for shipment to clients in Asia, Europe and South America. In March, the Company relocated its manufacturing facility from Hawthorne, California, to the new facility in Seymour, Indiana, which occupies 105,000 square feet on 14 acres of industrial land. At this facility, Cereplast transforms raw materials into bioplastic resins using state-of-the-art manufacturing equipment and sells its resins internationally to companies for use in plastic products that consumers utilize daily around the world. The Company expects to ship 16 million pounds of bio-plastic resins this year, an increase of 400% over 2009, in response to surging consumer and industrial demand for sustainable, “green” products.
Each standard rail car can hold up to 200,000 pounds of bioplastics and will allow Cereplast to sell and transport its products in large quantities. This appeals both to large volume plastic goods producers, who purchase bioplastics in significant quantities, and further supports the Company’s growth as shipping by rail is more efficient, cost effective, and will lower Cereplast’s carbon footprint.
At a total project cost of $400,000, the rail extension was funded by the City of Seymour, the Indiana Economic Development Corporation, and the City of Lawrenceburg through its regional economic development grant program. Construction began in May 2010, under Wayman and Associates. Contractors and project engineers completed the installation of the rail spur at the end of July.
“We would like to thank Seymour Mayor Craig Luedeman, Jackson County Industrial Development Corporation and numerous State, City and County officials for getting this project approved and making it a reality,” said Frederic Scheer, Founder, Chairman and CEO of Cereplast. “We are grateful for their combined support throughout the economic downturn, which helped us to get the necessary infrastructure approved for access to the railway, making it easier for us to serve our growing client base.”
In addition to helping fund the rail extension, the City of Seymour has accepted letters of compliance for tax abatement, which were offered to Cereplast to help offset associated expenses. The State of Indiana has also pledged tax credits to Cereplast totaling $600,000.
“The City of Seymour has been pleased to assist Cereplast,” said Seymour Mayor Craig Luedeman. “We pledge this support both now with the rail extension and in the future with on-going tax abatements. Cereplast is an excellent addition to our corporate family.”
About Cereplast, Inc.
Cereplast, Inc. (NASDAQ:CERP) designs and manufactures proprietary bio-based, sustainable plastics which are used as substitutes for petroleum-based plastics in all major converting processes - such as injection molding, thermoforming, blow molding and extrusions - at a pricing structure that is competitive with petroleum-based plastics. On the cutting-edge of bio-based plastic material development, Cereplast now offers resins to meet a variety of customer demands. Cereplast Compostables® Resins are ideally suited for single use applications where high bio-based content and compostability are advantageous, especially in the food service industry. Cereplast Hybrid Resins® combine high bio-based content with the durability and endurance of traditional plastic, making them ideal for applications in industries such as automotive, consumer electronics and packaging. Learn more at www.cereplast.com.
Safe Harbor Statement
Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.
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