Morning Trading May 28, page-63

PAPYRUS SIGNS TWO SIGNIFICANT CONTRACTS WITH THE EGYPTIAN GOVERNMENT 28 May 2024Papyrus Australia Limited (ASX: PPY), developer of sustainable technology that converts banana plantation waste into fibre and biodegradable food packaging products, is pleased to announce the signing of two substantial contracts with the Egyptian Government’s National Authority for Military Production (MP) through its subsidiary, Papyrus Egypt Banana Fibre Manufacturing Company LLC. This is on the back of the successful commissioning of the first banana fibre moulded packaging production line recently installed for the MP, that is receiving its raw material from the Papyrus Sohag Factory.Banana fibre moulded packaging production lineThe first additional contract involved the supply, supervision of installation and commissioning of a second banana fibre moulded packaging production line for the MP.Organic liquid fertilizer and cellulosic fibre production lineThe second contract involves the supply, installation, and commissioning of equipment for a processing line, to produce cellulosic fibre (for packaging) and organic liquid fertilizer from banana plantation waste.Importantly this processing line will enable the MP facility (Factory 200) to process their local plantation waste and operate the full value chain of the Papyrus production process.The two contracts are collectively valued at $1.7m USD and equipment is due to be supplied and installed early calendar year 2025.Papyrus will continue to sell products on behalf of the MP. Once the second moulding line is operating, the site has a total production capacity of up to 100 million pieces of moulded banana fibre packaging per year. This represents potential revenue of up to $2.7m USD per year from moulded product sales by Papyrus.