- Papyrus Australia (PPY) pens a contract for its banana fibre product line with the Egyptian government
- Through its Egyptian commercial entity, Papyrus Egypt, the company has signed a phase one deal covering the sale of banana fibre moulding line equipment and a moulded banana fibre product offtake agreement
- Under the contract, Papyrus will supply, install and commission a new production facility for moulded products made directly from banana fibre
- The company says the facility will have the capacity to process 2500 tonnes of banana fibre a year and produce roughly 35 million pieces of food packaging annually
- The offtake component of the agreement will see PPY procure all moulded products produced from the moulding line to sell through its distribution network in Egypt
- Papyrus Australia shares are up 8.7 per cent to 5 cents at 11:19 am AEDT
Papyrus Australia (PPY) has penned a contract for its banana fibre product line with the Egyptian government.
Papyrus, a developer of a sustainable technology that creates biodegradable food packaging and organic fertilisers through agricultural waste, signed the phase one contract on October 30 through its Egyptian commercial entity, Papyrus Egypt.
The phase one contract covers both the sale of banana fibre moulding line equipment and a moulded banana fibre product offtake agreement.
The contract will see Papyrus supply, install, and commission a new production facility for moulded products made directly from banana fibre.
The plant will convert 100-per-cent refined banana fibre into a range of biodegradable, sustainable moulded food packaging products including egg trays, fruit trays and cup holders.
Papyrus said that once set up, the plant would have the capacity to process 2500 tonnes of banana fibre per year, producing roughly 35 million pieces of food packaging annually.
The plant will initially be supplied exclusively with fibre from Papyrus’ Sohag factory, before later being expanded to include the processing of banana plantation waste, making it self-sufficient for its feed material.
The offtake component of the agreement will see Papyrus Egypt procure all moulded products produced from the banana fibre moulding line to sell through its distribution network in Egypt.
Papyrus said the agreement marked a key milestone in the “Cooperation Protocol Roadmap”, which was signed with the Egyptian Government’s Ministry of Military Production earlier this year.
“We are thrilled to have the opportunity to work with the Egyptian Government, providing the technology and training to allow them to work towards their goal of managing the waste from Egypt’s banana industry,” Papyrus Managing Director Ramy Azer said.
Papyrus Australia shares were up 8.7 per cent to 5 cents at 11:19 am AEDT.