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news has hit the sydney morning herald 27 mins ago

Cardia wins KFC green packaging contract

February 1, 2010 - 2:49PM

Green-packaging company Cardia Bioplastics Ltd has won a contract to provide compostable bags to fast-food giant KFC in South Australia.

Cardia shares were trading up 0.6 cents, or 31.58 per cent, to2.5 cents by 1420 AEST, after the news.

Cardia managing director Dr Frank Glatz said the move by KFC to use the bags in South Australian outlets came after the SA government introduced a ban on non-compostable plastic bags last year.

Dr Glatz said that while the terms of the contract were confidential, his company would provide millions of bags to KFC made from a resin that broke down.

The bags were strong enough to hold hot food but, in ideal conditions, would disintegrate within six to 12 weeks.

Within six months, they would convert fully to carbon dioxide and water.

If the plastic ended up in the ocean, it would degrade in a few years, rather than hundreds of years for conventional plastics.

Cardia said that a ban on non-compostable bags, similar to South Australia's, was expected to be introduced in Western Australia and the Northern Territory.

"There is quite a bit of momentum for it, not just in South Australia," Dr Glatz told AAP.

"Australia is not taking the lead here, we are really following Europe and California," he said.


http://news.smh.com.au/breaking-news-business/cardia-wins-kfc-green-packaging-contract-20100201-n861.html