Papyrus Australia Ltd (ASX: PPY) today announced a significant step forward in its commercialisation strategy, confirming on 28 April 2026 the execution of a binding agreement for board production. This contract satisfies Milestone 1 of its manufacturing and supply agreement with TBS Mining Solutions Pty Ltd, as initially disclosed in November 2025. Papyrus Australia Ltd is an innovative company providing sustainable solutions using its patented and patent pending technology to process agricultural waste, primarily from banana plantations, into high-quality alternatives to wood, paper, and plastic products. The new agreement is with a Vietnam-based paperboard manufacturer capable of converting pulp into paperboard jumbo rolls, utilising banana fibre pulp supplied by Papyrus.
Under the terms of the Board Production Contract, the Vietnamese supplier will undertake two initial production trial runs at a fixed, commercially sensitive cost. Following these trials, both parties will negotiate in good faith to agree on a final pricing structure for ongoing and long-term production. Papyrus will supply the virgin banana fibre pulp produced in Australia, delivering it to the supplier in Vietnam for conversion into paperboard jumbo rolls to Papyrus’s specifications. This arrangement allows Papyrus to concentrate on its core intellectual property and proprietary technology – the conversion of agricultural waste into ready-to-use pulp – by leveraging experienced manufacturing partners for essential, non-core production steps. Papyrus confirmed that Milestones 2 and 3 of the TBS Contract are expected to be completed before TBS gains any option to terminate the agreement.
Further bolstering its operational expansion, Papyrus has engaged Hall Chadwick Melbourne Pty Ltd, a national chartered accounting and advisory firm, to assist with establishing its high-volume production capability in Vietnam. Hall Chadwick will lead the project, overseeing aspects such as entity registration, securing permits, facility lease arrangements, negotiating raw material supply, and managing equipment installation and compliance. This engagement is deemed critical for establishing the scalable production base necessary to meet TBS supply obligations and support Papyrus’s broader commercialisation and global expansion roadmap. The Chair commented that executing the board production contract and engaging Hall Chadwick are foundational steps in delivering under the first commercial contract with TBS, establishing a long-term, scalable manufacturing footprint in Vietnam.
