Biodegradable and compostable plastics maker Secos Group says it is getting closer to achieving group profitability now that two of its three business units are operating profitably.
Last month Secos said its Malaysian operations have traded profitably so far this financial year and its Australian operations are trading profitably on a monthly run rate basis. The company’s Chinese business unit is now being reviewed so the group can become cashflow positive.
The push in Australia to ban plastic bags could affect biodegradable or compostable bags, including those made by SECOS Group. Jeff Angel, convenor of the Boomerang Alliance of 34 groups, which is campaigning against plastic bags, said "Our call includes the so-called biodegradable or compostable bags which are just as dangerous when littered or in the marine environment. They don’t disappear."
The merger of Cardia Bioplastics with Stellar Films to form SECOS Group is a positive development for environmental investors. SECOS is double the size of what it was as Cardia and it remains the only ASX listed stock that is focused on sustainable packaging. This includes biodegradeable resins, films and plastic products made from renewable corn and corn starch that can replace oil based plastics that are not biodegradeable and add to landfill.