for more information about stanelco click on the links.

driver's research page link
http://www.moneyam.com/InvestorsRoom/posts.php?tid=7681#lastread
website link
http://www.stanelco.co.uk/index.htm

From the Sainsbury's website.......

For the Sainsburys So Organic range we continue to increase the number of products that use compostable packaging, a truly biodegradable, sustainable solution that is made from renewable sources like maize or sugarcane. We require that all compostable packaging be sourced from crops that are not genetically modified. All our compostable packaging must be certified to the European standard EN13432, which enables us to display the Compostable logo and so tell customers they can compost it in the garden. Supplies of this new form of packaging remain extremely limited but we are keen to grow these markets.

HD2005,its no secret who is supplying the trail bags for organic apples, read last Saturdays posts,but as to food trays who knows?

And therein lies the problem. Starpol is not from GM free crops. It can be, but Terry pointed out that supply of this was very limited and that volume was needed to make it economic to do.
The other question is how are they going to seal it?? Most sealing technology requires a layer of non biodegradable film.
Has the working together idea between Sainsburys and Asda been going for some time?? Could a single packaging line do Asda stuff in one material and Sainsburys stuff in another?
All will, no doubt, become clear. Eventually.
Alan

Sainsburys currently pack some of their organic produce in compostable packaging, i'm sure ths isn't made by Stanelco, so surely they would use the same manufacturer for their future plans??

If the losses are going to be greater than expected, does this mean Stanelco are going to run out of cash quicker than the 3 month estimate?
Obviously if they land the 2 contracts mentioned this won't be a problem.

In a hurry, not at home but briefly RNS good news and part of the jigsaw of research done by some on this BB.confirms. Much more to come.

Report in Telegraph re Sainsbury's using compostable biodegradable packaging for ready made meals. Dont have time to find link - go to Telegraph site.

Apparently this is from 2004 so a bit old

Fron Packaging Gateway.com Date unknown.

To this end, Sainsbury's has been working with a couple of companies to introduce more biodegradable and compostable packaging made from sustainable crops. Stanelco, a small UK company with expert knowledge of radio frequency welding, has developed a method of manufacturing trays made from starch that is more energy-efficient and quicker than standard technologies. Hence, the trays are cheaper and will be used in more areas than the traditional, organic produce sector.

http://66.249.93.104/search?q=cache:xb1qm6dzDHsJ:www.packaging-gateway.com/features/feature19/+Sainsburys+stanelco&hl=en&gl=uk&ct=clnk&cd=4

Not to worried with interims- let's face it no orders=going bust (just a function of when) However you can not put a RNS out that contracts are being finalized without being absolutely sure this will happen. Have been holding long enough now to sit this one out cos the the day is near

Appreciate what madpad said several hundred posts back..... but does anyone know definitely that SEO are no longer working with sainsburys re biodegradeable packaging?

happier to hold.
(where are the ii shorters this morning?)

Busy shorting

The compostable material that Sainsbury's have been using for their organic apples is Mater-Bi, which is a PHA compound, made by Novamont. Like PLA made by Naturworks, it is permeable and so not suitable for ready meals. On the otherhand, Starpol 2000 and Starpol 3000 is not permeable and can be used for ready meals.

With regard to financing, if I had two 4 million contracts about to be signed but needed short term cash to tide me over, I would be seeking a drawdown loan facility from a lender. Also, if I was installing GS to a lot of machines ready for "switch on" at the end of the year, I would expect my costs to increase. But then again I would be telling a lender, in confidence, of the situation.

In other words, I think that things are moving along, and we shall see a rise in the SP in due course. If the sp of Bright Things can move rapidly upwards based upon their RNS yesterday, which basically said that their a few third parties were interested in their demonstration DVDs of a new Tomb Raider game, then I can see the same interest here. That's my opinion. You pays your money, and makes your choice.

Kind regards
Raymond

Now thats worth making a note of, Aldwickk

Just an idle thought ..... and NOT a ramp.

Are we all assiuming that the two letters of intent will only produce one MMF from each company with whom they are finalising the contracts?

The USA is a very big place and I have an inkling that at least one of the letters are to have more than one MMF. I know one of the companies have several plants across the US so it would make sense to have more than one producing Starpol.

If that is the case then we shall see things moving more quickly than some on this board think they will.

The oily one

Nice one oily. That's what I call thinking outside the box.

Kind regards
Raymond

You can compound that, Oily.
The statement about MMF's said each one between x and y tonnes.
Tony did a fag packet calculation for 2 @ 20000 tonnes, but as I remember, that was the x in the above sentence. The MMFs for which contracts are nearly there could be any number of MMF's , each for up to 75000 tonnes.
Alan

I understand a MMF is not a complex set-up. They can be created, equipped and fully running in under 6 months and do not require a large process area. If installed in an existing plastics environment and building this could be done quicker.

Once up and running the actual process of producing Starpol is again relatively straightforward - presumably not dissimilar to other plastics which the JV partners know well.

20,000 tonnes (or tons) p.a. basic throughput planned. That is 80 tonnes per day (on a 5 day working week). That is one hell of a lot of material per day. And that makes one hell of a lot of food trays - or hamburger trays - CocaCola bottles or whatever. Puts the "4 million per annum per 20,000 ton licence plus a small percentage of end product sale price" into context.

Raw and produced material storage space would however be have to be considerable even with a tight supply chain schedule - not SEO's problem.

Roll on!

Alan
Read your post after making mine.
The 25 April 2006 statement (see it on PM1s research site) refers to 4m for each 20,000 ton licence. Presumably that relates to each production unit and further royalties become payable if this capacity is exceeded, as well as the sales royalty.

(I do have trouble editing - LOL)

Gonna look it up Tony, but I am certain each license was referred to as between 20,000 and 75,000 tonnes.
Back when I find it!!
Alan

Found something like it. Can't remember where I got the 75000 tonne bit but this definitely states that the 20000 tonnes is a minimum.

ORLANDO, Fla.--(BUSINESS WIRE)--March 3, 2006--In response to burgeoning U.S. demand for biodegradable materials in the quick service restaurant and mass-retailer packaging industries, Stanelco PLC (LSE:SEO - News) has confirmed the company will be offering a limited number of manufacturing licenses to U.S. companies to keep up with biodegradable packaging growth. The licenses, described as micro-manufacturing licenses, will be for the manufacture of a minimum of 20,000 tons of biodegradable resin utilizing Stanelco's STARPOL(TM) range of biodegradables.
Volume manufacturers of materials used in the U.S. quick service restaurant, supermarket and consumer mass-retailing industries are expected to be the earliest licensees for Stanelco's micro-manufacturing partnerships.

Alan.
"A limited number" it said.
Bugger - I might not become super super super rich!