biodegradable by HC1111110998

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									             BIOPOLYMER




Starchtech
                  Global demand for bags

•      North America and Europe account for almost
       US$10 billion worth of plastic bags annually.

•      Californians use 10.8 billion plastic bags per year -
       enough to circle the earth 67 times (California
       Recycled Organization) Supermarkets alone in
       California generate 6.5 billion disposable plastic bags.




    Starchtech
•   Australia uses 6.9 billion plastic bags every year.

•   Taiwan used 2.5 plastic bags per day per person,
    adding up to 20 billion bags per year.

•   China uses almost 3 billion plastic bags each day
    according to UK’s The Guardian.

•   Hong Kong estimated 9.85 billion plastic bags
    disposed each year. A public program to educate on
    alternatives that are environmentally friendly.


Starchtech
•   Ireland was consuming 1.2 billion plastic bags per year
    before the PlasTax. A tax of $0.13 per bag was
    introduced in 2002, reducing consumption by 90%.

•   The UK and state of California, USA had already ban
    free plastic bags.

•   Switzerland’s supermarkets charge $0.15 to $0.20 per
    paper bag. Paper bag is recognized as a weak
    alternative both environmentally and use for wet
    products.

Starchtech
Consumer convenience…
…turning into environmental “night-mess”
Starchtech
                Countries Ban Plastic Bags

Amsterdam,      Botswana        China          Alaska
Netherlands     Italy           Taiwan         Nantucket, Massachusetts
France          Macedonia       Japan          Seattle, Washington
Denmark         Holland         S. Australia   Westport, Connecticut
Germany         Israel          Egypt          State of New York
Belgium         Mumbai, India   Somalia        Fairfax, California
Switzerland     Bangladesh      Kenya          Los Angeles, Califormia
Ireland         Bhutan          Uganda         Oakland, California
UK: Modbury     Pakistan        Eritrea        San Francisco, California
UK: South Devon Sri Lankan      South Africa   Leaf Rapids, Canada
                                Rwanda         Tanzania
Starchtech
                Environmental issues
•   China coined the problem “white pollution”.

•   South Africa dubbed plastic bags flapping on fences and
    bushes as the “national flower”.

•   In 2002, Bangladesh slapped an outright ban on plastic
    bags in the capital city of Dhaka after the 1998/9 floods
    caused by non degradable plastic bags choking drainage.

•   India had outlawed the use of plastic bags thinner than 20
    microns in the cities of Mumbai and Delhi. An indirect way
    to discourage use of plastic bags through higher cost.
Starchtech
Retailers desperate for viable alternatives for fear of falling sale
as a result of government’s curb on the use of plastic bags.




                                           Biodegradable is a green solution…
Starchtech
                     Starchtech offers a new
                     generation of starch-based
  Starchtech         biodegradable resin and

  Technology         bags from tapioca renewable
                     resources. The unique
                     starch-based plastic allows
                     for responsible disposal of
  The Imperative     products through composts,

       Alternative   biodegradable action, or
                     clean incineration, with a
                     positive life cycle impact.




Starchtech
Biodegradable
Action




Starchtech
Threatening
                  Trends




               There’s a growing trend by environmentalists
             and the global community to reduce the amount
                             of "white pollution" in the world.
             Efforts in Ireland, Australia, Germany & Sweden
                are already showing results and it will not be
              long before legislation against non-degradable
Starchtech          plastic products are imposed universally.
                   Biodegradable companies

       Australia   Plantic Technologies
                   Biograde
       Italy       Novamont
       Germany     Biotec
                   FKur          Competitive edge
                                      - Application
       France      Spheres
                                      - Quality
       UK          BPI/Innovia        - Price
       USA         Cereplast
                   Metabolix
                   Natureworks
Starchtech
               Price positioning

   Price of biodegradable resin by other companies:
   USA          : Cargill Dow (PLA)       US$ 5,000/MT
   Italy        : Mater-B                 US$ 6,000/MT
   UK/France    : Innovia/BPI/Biotec      US$ 6,300/MT
   Germany      : Biotec/FKur             US$ 6,500/MT
   Aus/China    : Biograde                US$ 6,500/MT
   Japan        : PCL                     US$ 8,000/MT


Starchtech
                Public Perception & Acceptability

                                                                 Purchase Bio ?
                                                                                      No. of           %
                                                                                     Response

                                                                Would not                      25      2.43%
                                                                If same price             690        66.99%
                                                                Little more               240        23.30%
                                                                Much more                  75         7.28%
                                                                     Total              1,030       100.00%

                                                                • Currently >30% willing to
                                                                  purchase even if it costs more.
                                                                • Price our resin 20% more than plastics resin.
                                                                • Price our finished products at the same
                                                                  prices as the medium-to-high end finished
                                                                  plastics products.
                                                                • If it cost the same, more than 90% will buy
                         28 June 2004
http://www.plasticsnews.com/subscriber/fyi.html?id=1088199123
                                                                  the biodegradable products.

     Starchtech
             Price comparison

                                           Price (USD)
                                          Per Metric Ton


             $6,000


             $5,500

             $5,000

             $4,500

                                                                            Price (USD)
             $4,000
                                                                            Per Metric Ton

             $3,500

             $3,000

             $2,500


             $2,000
                      StarchTech   Biograde (Australia)    FKUR (Germany)



             Starchtech’s pricing strategy: US$ 2,500-3,500/mt
Starchtech
                Early-mover of
               cost competitive
             Biodegradable bags
              ZERO-PLASTIC


Starchtech
                            Resin Production Process




Tapioca flour




     Zero-Plastic
Starchtech          resin
  Dust Collector     Cyclone    Classifier   Feeder    Pulverizer   Air Cooling




High Speed         Cooling     Water
   Mixer            Mixer      Chiller




 MIXER
                                                      PULVERIZER
Starchtech
Feeder   Dust Collector   Grinder Machine    Discharge product



                                  Feeder    Blower   Extruder    Cutter




         GRINDER
                                                 EXTRUSION LINE
Starchtech
      Conveyor Feeder     Spiral Drier   Classifier




                   EXTRUDER AUXILARIES
Starchtech
                              Film + Bag Production




        Tapioca flour

         Zero-Plastic resin
Starchtech
BLOW FILM 45 ● BAG CUTING & SEALING ● PRESS MACHINE




  Starchtech
Starchtech
Starchtech

								
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