Periodic Reporting for period 1 - BioPackNet (Manufacturing of biodegradable and compostable packaging nets through a conventional one-step extrusion process)
Reporting period: 2017-02-01 to 2017-05-31
Through Phase 2, we aim to 1) optimize bioplastic formulations & compounding for 4 case studies application, having a final biomaterial sold for 3 €/kg. 2) optimise Extrusion Melt Spinning (EMS) process by reducing weight & cost of current biodegradable meshes, maintaining mechanical properties, 3) design & optimize 2 packing machines for fruits, vegetables and shellfish: a) Biobag for 3-10 kg bag size; b) Biopack for 0,50-2 kg bag. 4) Our 4 case studies meshes & packers full-scale will be validated at end users’ facilities, and 5) will be launched into the EU market by 2020. Ecoplas & Blue Team will increase its personnel in 8 and 6 new employees respectively, and its total sales projection and profit will be worth 52M€ and 5,7M€ for Ecoplas, and 25,6M€ and 3,7M € for Blue Team in the first 5 years’ commercialization. BioPackNet profitability for Ecoplas & Blue Team its demonstrated with 868% and 481% of ROI.
Main results: 1) Biodegradable Polymers Analysis: preselection of current biopolymers available & market price analysis. 2) Production & operation cost analysis: a) Blue Team detailed cost breakdown of Biopack & Biobag materials requirement, labour cost, installation cost, transportation, average 15% margin after general expenses, that determined Biopack & Biobag selling prices (100.624€ &120.893€). And Biopack & Biobag economic benefits for end users, an average savings of 0.9M€/year for standard packing company (considering 20M mussels/year), b) cost-competitive meshes selling prices (0.024€/kg- 0.005€/kg non /oriented mesh). 3) Key partners: a) AIMPLAS (subcontracted R&D bioplastics institute) to improve & tuned our bioplastic formulation & compounding. b) end users for final meshes and packers’ validation: Linamar and Mussel farmers of Cabo de Cruz, c) Morera y Vallejo, supplier of compostable label for manufacturing combi-nets during ph2, and post project, d) Greenize consulting to develop Life Cycle Analysis, and assess us during certification process. e) Packing distributors with long commercial relationship with Blue Team & Ecoplas, commercial allies to create EU sales networks. We have received supporting letters from packing companies, distributors, and food retail companies. And have preselected packers’ equipment’s providers. 4) Market analysis & commercialization strategy: we will focus on vegetables, fruit and shellfish packing sector. 5) Patentability study: we confirm a freedom to operate analysis and Intellectual Protection Strategy to protect technology and trademark, and extend BioPackNet around Europe. 6) Financial plan: from a detailed 5 years sales forecast. Ecoplas revenue of 52 M€: 1) BioPackNet meshes sales (39,5M€), 2) Biopack and Biobag sales (12,44M€), with average profit margin of 8%. Blue Team revenue of 25,6 M€ from: 1) Direct sales of 112 units (13,4M€), 2) machines sold to Ecoplas, 104 units (11,5M€),3) After sales services (0,78M€). Profitability of BioPackNet is proven for Ecoplas with IRR= 71%, and for Blue Team by IRR= 52%.
During our first 5 years of commercialization our objective is to sell a total of 13.155 tons of meshes that will provide 39,4 M€ revenue; 112 Biopack units (12,3M€) and 104 Biobag machines (13,5M€), and provide after sales services (0.77M€). We will target farming producing countries (Spain, Italy, France reach 52%), shellfish producers as Portugal, and main consumers of organic food & bio-plastic (north-central EU countries) and in Latin America. Our market launch in 2020 will be in Spain, France, Germany, Italy, Portugal, The Netherlands & Belgium; Austria and Switzerland in 2021; and Norway, Greece and Latin America (Brazil & Argentina in 2022. Our payback period will be short, 2,5 years, initial investment will be refund by mid-2021 and let us foresee a positive cash flow on the second year of commercialization. Ecoplas & Blue Team will increase its personal in 14 people (8&6 people respectively): 3 R&D, 4 workmen, 4 sellers, 3 administration.