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

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!

Am I being naive or cud it be that contracts will be signed upon FDA's Starpol 3000 approval (which according to SEO is "imminent")?

C'mon Tony, thought you were an accountant.
The only number that is unlimited is infinity!!!
A googleplex of googleplexes is limited!!
Take your point though. Still very positive when you read that the expectation was for those who supply fast food chains and supermarkets would be the most likely!!
Alan

I still think thees a fairly long way to go yet.
I will be more relaxed with a deal has actually been done.
I take it from RMHYAMS reply , no-one knows whose supplying the packaging for MEALS for sainsburys?
I think i'll stick my next out and say 20p by xmas.
LOL

The annual results staes:

"The intention is to offer a number of manufacturing licences in the US to
produce its range of materials through a micro manufacturing program for supply
to the supermarket and quick service restaurant industry. These licences will
enable converters to ensure a guaranteed supply of biodegradeable material in
order to satisfy the demands of these industries. Each licence will be for a
minimum of 20,000 tonnes and will be operated as joint ventures. This program
will ensure the availability of product in order that the market will be able to
have a rapid uptake of biodegradable materials. Recent negotiations with
manufacturers that are particularly concerned with the future of petroleum based
plastics have shown great interest in vertically integrating resin production in
or beside their plants."

The calculations of the MMP contribution was based on 20,000 tonne pa capacity. Also, there was mention of a 1.5m "Technology Transfer" fee payable upfront....

Glad its your neck and not mine!!!
A tad optimistic, I'd venture, but I do have a rather nice divi going to my broker next week and I have placed a limited buy order on SEO with that, despite everything I said about waiting. I can always change it if I decide to before then, but I am confidant that we are seeing something of a rebirth, but without the silly hype that spoiled it last time.
Alan

With Sainsbury's telling everyone they are starting to pack in bio materials, this will push ASDA into moving faster to do the same, instead of draging there feet as they have done for the last year.
Think we should hear something very soon now, thank you Sainsbury's.

I believe Sainsbury's currently use Innovia Films to supply their biodegradable packaging for their organic produce.

http://www.j-sainsbury.com/index.asp?pageid=249&section=responsibility&subsection=environment&question=6