SECOS surges 17% on release of new resin
Shares in sustainable and eco-friendly biopolymer developer SECOS Group Ltd (ASX:SES) opened 17% higher on Tuesday morning after the company announced the successful release of a new Home Compostable resin grade for use across a range of flexible applications.
Leading up to this development, SECOS had identified a range of food and consumer packaging applications as key strategic growth markets.
This new grade of Compostable Biopolymer will complement the company’s existing compostable resin range and opens significant new opportunities to supply the domestic and international food and packaging sectors.
The new Home Compostable resin allows SECOS to provide a product packaging and waste management solution that directs used packaging to either a home compost or an industrial compost end of life solution, which is consistent with Circular Economy Principles.
Highlighting the market drivers for this type of product, SECOS chief executive Ian Stacey said, “Branded companies requiring sustainable packaging are increasingly searching for an alternative compostable replacement of single use-plastic packaging and plastic bags.
“Consequently, SECOS is seeing a significant increase in demand for certified Home Compostable resin, which when converted into food and consumer packaging, or bags, offer consumers multiple end-of-life options including Home Composting.
“SECOS is working with converters in both domestic and several overseas markets, who are looking to utilize Home Compostable resin in a number of new applications such as Box Liners, Food Packaging Bags and Carry Bags.”
Assists in diverting food waste from landfill
SECOS’s new Home Composting certification will mean that carry bags, food produce bags and other fresh food packaged in compostable bags can be picked up from the retailer, stored at home and finally disposed of with food waste either into existing organic waste streams (e.g., via green bin waste when it is diverted to organic waste treatment processing) or via domestic composting.
SECOS Compostable Bags assist householders in diverting food waste from land-fill which ultimately reduces greenhouse gas emissions.
The new Home Compostable formulation is a result of SECOS’ targeted research and development activities, which for the last year have been focused on the development of new compostable formulations.
The Home Compostable formulation is the first new product from this program, and importantly meets Australian and International standards for Home Compostability.
SECOS expects to further broaden its product range with the release a number of new grades in coming months, potentially providing further share price momentum.
The Home Compostable formulation which can be produced at the group’s plants in both Malaysia and China, will open significant new opportunities within the food and consumer packaging markets.