Pressure mounts for European production of PLA biopolymer
As converters and brands look for improved costs and availability in biodegradable polylactic acid (PLA), key material suppliers are under increasing pressure to invest in European production.
PLA can be derived from crops such as maize, wheat and sugarbeet, or from by-products of cheese manufacture. Volumes are still at a much lower level than for traditional plastics, but producers of the biopolymer appear to be at a crossroads when it comes to stimulating demand while managing supply and pricing.
Fully owned by Cargill since February, NatureWorks LLC has an estimated 140,000t of capacity in North America; far more than any of its rivals. But as trials with injection stretch blowmoulding for applications such as water and edible oils take off, and European retailers such as Delhaize take more PLA-based packaging, converters are among those calling for more production capacity in Europe.
One converter says: "There's no way that NatureWorks can continue to supply volumes of its material into Europe from the US. They're pricing themselves out of the market." The company adds: "Prices are still at a level that would make it difficult for a customer to decide in favour of PLA for a commercial launch."
Chris Claesen, chief executive of Dutch-based PLA supplier Hycail, estimates that, kilo for kilo, PLA is still priced one-and-a-half times higher than polyethylene terethphalate (PET). But other experts in the sector say that NatureWorks has managed to bring its prices down very close to those of PET, and is being helped by continuing oil price hikes.
For its part, Hycail currently has only 1,000t capacity, but is planning to increase this to 50,000t in Europe by 2008. Says Claesen: "We really think this material is taking off, especially with favourable changes to the German DSD system."
In the UK, Esterform has trialled injection stretch blowmoulded bottles for the Belu mineral water brand using NatureWorks PLA. Technical development manager at NatureWorks Luc Bossiers says that globally the supplier has three commercial applications in bottles, but no fully-commercialised applications as yet in Europe.
Says Bossiers: "It seems likely that there will be a European factory, but the timing is still uncertain."
NatureWorks has increasingly been working with international suppliers such as Husky and Amcor in injection stretch blowmoulding and Huhtamaki in thermoforming.
