Australian bioplastics film suppliers merging to form mega-company

Melbourne, Australia-based supplier of biohybrid and compostable resins Cardia Bioplastics is merging with Australian firm Stellar Films Group to form a sustainable packaging operation with annual sales of almost Cdn$30 million.

Stellar Films is a privately held global manufacturer of high quality cast films to the personal care, hygiene and medical product industries with manufacturing facilities in Melbourne and Port Klang, Malaysia.

Cardia Bioplastics, develops, manufactures and markets its patented renewable resource-based materials and finished products, for the global packaging and plastic products industries. It was established in 2002 and holds a strong patent portfolio and growth fuelled by the global trend towards sustainable packaging.

The two companies have already collaborated on the production of environmentally friendly Biohybrid films designed for the global personal care and hygiene products industry.

According to a statement from Cardia Bioplastics, a merger with Stellar will complement and strengthen the company’s business in its product offering, market position and global reach.

“The combined business has the scale and resources to deliver the successful implementation of our profitable business growth strategy in our carrier bags, films & packaging, and waste management target market segments,” said Cardia Bioplastics chairman Richard Tegoni.

Final shareholder approval of the merger is expected in January 2015.