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Cereplast Inc. (CERP.OB) Readies for 50 Million Pound Capacity Expansion in 4th Quarter

Source: http://Blog.QualityStocks.net/?p=11015
Posted on Wednesday, July 9th, 2008 | In Current Market News, OTCBB Markets, Small & Micro Cap, Stocks to Watch
Contributed by: QualityStocks (http://QualityStocks.net) -

The world laments the way its population is treating the environment. Energy may be a hot topic at the moment, but it is a relatively new issue in the public’s mind. Consumer-based waste products have been around for more than a few decades; just think of the “reduce-reuse-recycle” mantra. In today’s marketplace, there is finally some technology available to cope with part of this waste issue. Doing something in the plastics “reuse” category has always been a cost issue, with most possible answers being too expensive for manufacturers. Today, however, there may actually be a practical and profitable solution in this one area that will certainly put a dent in virgin plastic use.

Cereplast Inc., a bio-plastics manufacturer, works to offer plastic resins manufactured with 100-percent recyclable plastic materials and 50-percent recyclable plastic materials. The company has had solid responses from companies testing its resin products – resulting in many buying for a full spectrum of products. The range of products being manufactured from the company’s resins is perhaps the most remarkable finding, regardless of recycled content. Children’s play toys to women’s cosmetics jars, the company is finding acceptance across a large customer base.

Growth appears to be the word of the quarter for this company. It has a solid customer base developing, has recently received yet another patent – working toward 22 in total – and has also recently opened an international office in France. Not surprisingly, the company also has international patents in process. Capacity might have been an issue with any company beginning to hit its stride. Cereplast Inc., however, currently has 50 million tones of manufacturing capacity located in California and further capacity being constructed, to add an additional 50 million tons, in the Midwest.

As one might expect, capital requirements can be tight at this point in a company’s growth. Demand and possibility represent difficult parameters to reconcile. Cereplast Inc., however, appears to be on target with its plans and is quite ready to recycle some profit back through its books.

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