At Labelexpo Europe 2019, Taghleef Industries(Ti), announced their new sustainable film solutions to the labels community.
NATIVIA® D813 is the first bio-based and biodegradable I-IML film on the market and complements Ti’s wide range of IML BoPP films. This PLA (polylactic acid) film is designed to run on reel-to-sheet offset printing machines, achieving good printing speed and excellent ink adhesion. These features make NATIVIA® D813 a unique film that meets the growing demand for bioplastic-based containers that can be decorated with I-IML technology.
Another film is the ultra-clear floatable SHAPE360™ TDS. This low-density TD shrink sleeve label film minimizes the impact on PET recycling systems and reduces the weight of the label. The exceptional shrink curve guarantees up to 65% shrinkage, offering the freedom to fully decorate containers in a wide variety of shapes and sizes, and the potential for 360° eye-catching label graphics.
Ti has enlarged its pressure sensitive label (PSL) portfolio with an innovative range of BBP-free top coated films with extra features to enhance film performance. One of these is PPGP, a multilayer film that has a proprietary skin providing highly compatible and superior PSA receptivity. Ti’s top coating ensures excellent print performance and superior graphics utilizing a variety of printing processes. PPGP is an integrated product designed for repositionable, removable, or ultra-removable applications.
England recognizes that the policy of reducing plastic bags is showing a very positive signal when over the past 5 years, plastic carrier bag sales fell by more than 95% in main supermarkets. Since the 5P charge was introduced in 2015 at England’s main supermarkets, the average person in England now buy just 4 bags/ year, compared with 10 last year and 140 in 2014.
The 5p charge was introduced in England to help reduce litter, protect wildlife and influence consumer behaviour after the number of carrier bags given out by the 7 major supermarkets rose by 200m in 2014. At the time, consumers were using more than 7.6 billion bags a year, amounting to 61.000 tonnes of plastic. Nowaday, the charge applies to all retailers employing more than 250 people, although the government has consulted on extending this to all businesses as well as raising the minimum charge to 10p.
The environment secretary, George Eustice, said: “We have all seen first hand the devastating impact that plastic bags have on the environment, littering our beautiful countriside and threatening the world’s marine life. I am committed to driving this progress further and I hope this continues to inspire similar action across the globe”
Separately, the Welsh government launched a long-awaited consultation, including proposals to ban 9 types of single-use plastic products. In the 20 years since devolution, Wales has transfromed from a nation which recycled less than 5% of its municipal waste, to become an international leader that recycles 63%.
Last July 2020, BGUSA, INC announced that they have solved the much-disputed argument of ridding the Earth of single-use plastic bags by a special material. The newly developed material for these bags is called fibrous amylum (FAL). It is 100% bio-based material sourced from natural food waste and organic starches with no artificial ingredients and no petroleum-based chemicals. BGUSA is the only company in the world with this technologically advanced organic material.
These bags burn like paper with no toxic fumes. They turn into a tissue-like paper with a warm vapor that smells like wood.. And, marine life, humans, and animals are not harmed if these bags are accidentally ingested. These bags are water-resistant. Having the same advantage of traditional plasc tic bags,The BGUSA bags have an electric dissipative feature (suitable for electronic wrapping) along with an anti-static feature-dust repellent, oxygen-barrier corrosion prevention, and oil/grease resistance. They dissolve in hot water (70 degrees C) and soften in the water at room temperature.
Besides, BGUSA’s bags compost in yards or landfills in <90 days. When the bag composts, what is left of the bag enriches the soil, and thus returns nutrients to the ground.
After a strict testing process, the product received ASTM D6866 certification, which is considered one of the highest certifications for compost material and other international certificates such as ASTM D6400, ASTM D5338, ISO 20200, and OECD 208. Now, the bags are manufactured in various sizes from a produce bag up to trash bags. BGUSA is the only company distributing this type of bag composition in the U.S./Canada region.
The Witzenhausen Institute and the University of Bayreuth conducted a very interesting study, analysing the compost of several German industrial composting facilities for possible plastic content deriving from compostable biowaste bags. The field study concluded that compostable bags, certified according to the European standard EN 13432, do not pose any challenges to the quality of the compost. During the research project, the results of which were published in the May edition (05/2020, in German) of the German trade magazine „Müll und Abfall“, the scientists analysed a total of 30 samples and in 25 of them no residues from compostable bags were detected. However, 98 percent of the plastic particles that were found derived from PE or other conventional plastics.
The study adds very important data to a discussion which, so far, has almost exclusively been conducted emotionally and in absence of any scientific facts. Since many years, industry representatives, such as the German industry association Verbund kompostierbarer Produkte, state that compostable biowaste bags are not the problem but can be part of the solution: “The study results once again prove that the use of biopolymers doesn’t negatively affect the compost. On the contrary, they provide the consumers with hygienic and high-quality solutions for the separate collection of biowaste”, says Peter Brunk, Chairman of Verbund.
The study also showed the importance of a mandatory certification for the acceptance to use compostable biowaste bags. In order to ensure a high-quality compost, biowaste bags made from paper, whether including a coating or not, should also need to pass a certification process.
Carlsberg and Coca-Cola back pioneering project to make ‘all-plant’ drinks bottles.
A mound of plastic bottles at a recycling plant near Bangkok in Thailand. Around 300 million tonnes of plastic is made every year and most of it is not recycled. (Diego Azubel / EPA)
Beer and soft drinks could soon be sipped from “all-plant” bottles under new plans to turn sustainably grown crops into plastic in partnership with major beverage makers.
A biochemicals company in the Netherlands hopes to kickstart investment in a pioneering project that hopes to make plastics from plant sugars rather than fossil fuels.
The plans, devised by renewable chemicals company Avantium, have already won the support of beer-maker Carlsberg, which hopes to sell its pilsner in a cardboard bottle lined with an inner layer of plant plastic.
Avantium’s chief executive, Tom van Aken, says he hopes to greenlight a major investment in the world-leading bioplastics plant in the Netherlands by the end of the year. The project, which remains on track despite the coronavirus lockdown, is set to reveal partnerships with other food and drink companies later in the summer.
The project has the backing of Coca-Cola and Danone, which hope to secure the future of their bottled products by tackling the environmental damage caused by plastic pollution and a reliance on fossil fuels.
Globally around 300 million tonnes of plastic is made from fossil fuels every year, which is a major contributor to the climate crisis. Most of this is not recycled and contributes to the scourge of microplastics in the world’s oceans. Microplastics can take hundreds of years to decompose completely.
“This plastic has very attractive sustainability credentials because it uses no fossil fuels, and can be recycled – but would also degrade in nature much faster than normal plastics do,” says Van Aken.
Avantium’s plant plastic is designed to be resilient enough to contain carbonate drinks. Trials have shown that the plant plastic would decompose in one year using a composter, and a few years longer if left in normal outdoor conditions. But ideally, it should be recycled, said Van Aken.
The bio-refinery plans to break down sustainable plant sugars into simple chemical structures that can then be rearranged to form a new plant-based plastic – which could appear on supermarket shelves by 2023.
The path-finder project will initially make a modest 5,000 tonnes of plastic every year using sugars from corn, wheat or beets. However, Avantium expects its production to grow as demand for renewable plastics climbs.
In time, Avantium plans to use plant sugars from sustainable sourced biowaste so that the rise of plant plastic does not affect the global food supply chain.
The recently successful Initial Public Offering (IPO) is just the first step of An Phat Holdings (Ticker symbol: APH) in the company’s plan to mobilise capital for AnBio compostable material manufacturing plant. The project will put APH on the list of one of the few enterprises in the world such as BASF, Novamont, NatureWorks, Total Corbion … that capable in producing compostable materials.
APH – The noteworthy stock IPO during Covid-19 outbreak
In an interaction with media, Mr. Dinh Xuan Cuong, Vice Chairman and Chief Executive Officer (CEO) of APH proudly said that this will be the first compostable material manufacturing plant in Vietnam that would be able to supply “green” materials for both domestic and international production.
When AnBio project is completed in 2022, APH will fully take the initiative in production inputs, while reducing product’s cost to create more competitive advantage. In the context that the market of compostable products is expected to accelerate in the next few years to replace disposable plastic products, this is considered an important strategic move of the largest green materials manufacturer in Vietnam.
To have a more comprehensive view, the reporter had an interview with the Vice Chairman and CEO of APH.
As seen, the registration for your last IPO auction was nearly 5 times higher than your expectation , the bid price is 2 times higher than initial one. Maybe, both of you & BoD were really surprised with this result?
– We were not surprised with the auction results, but we impressed with the number of auction registrations that nearly 5 times higher than the selling volume. Prior to the IPO, many investors who participated in this auction had earlier discussed and worked with APH. Therefore, we foresaw the price they were willing to pay.
In the recent IPO, APH has been highly priced. It can also be seen that many investors are interested in APH’s stock and AnBio compostable material manufacturing plant. That is a good sign.
Calculation methods indicate that the book value of An Phat Holdings as of December 31, 2019 at only VND 15,300, while other calculating methods point out market value of An Phat Holdings at around VND 23,800 per share. So, in your opinion, what are the reasons for investors to pay more than VND 50,000 per share, much higher than the valuation of the other companies in the same industry?
-According to the statistics of the listing consultant, the average P/E ratio of the domestic and regional plastic industry is about 11.17x. With 2019 EPS is VND 3,433 per share, based on the company’s P/E ratio, the valuation of APH is VND 38,344 per share. However, I believe that investors buying a stock not only based on historical data but also its future prospect. Therefore, when investors paid more than VND 50,000 per share, it represents investors’ confidence in the growth prospects of APH as well as our subsidiaries.
Though securities market now has recovered slightly, but it is still very unpredictable. In the past, there were many successful IPO with high bid prices, but when listed, the stock price will plunge in the first few session. What is your opinion on this matter?
-Listing immediately after the IPO is an usual and common activity in developed stock markets to mitigate the risk after investors participating in the IPO, so that they can trading stocks as soon as possible.
APH aims to issue and prioritize majority of shares for institutional investors who aim to hold stock for a long-term. We strongly believe that their long-term commitment with businesses will help reduce price variation.
In addition, when AnBio comes into operation, it will contribute significantly to the company’s business results.
In stark contrast with other businesses, APH chose to IPO and listing at this sensitive period. In comparison with state-owned enterprise, it seems that equitization activities, IPOs will be delayed due to COVID-19. Sir, what is the reason behind this scenery?
-We have a clear goal of raising capital for AnBio plant. Capital from the IPO will be retained to increase the surplus and value for the company. This project is indispensable and crucial in APH’s development plan, thus it is suitable to implement at this time.
Moreover, COVID-19 has been well controlled in Vietnam. Vietnam has also become a bright spot in the world after successfully contained the pandemic. The fewer businesses listed at this time, the more prominent we become to lure more investors.
During the time combating COVID-19, we still ensure production and business activities. As a result, when the pandemic is under control, APH is ready to welcome investors, especially foreign investors, who are increasingly considering Vietnam as an attractive destination.
Sir, as it is known that APH will spend 15.75 million shares to sell to strategic investors. Could you please reveal more information about potential investors as well as their strengths to support the company in business operations and market expansion in the future?
We spend majority of this issuance for strategic investors while targeting long-term financial investors.
Reputable and experienced long-term financial investors in developed and developing countries will bring long-term, stable financial support to us.
On the other hand, strategic investors will offer recommendation about project implementation such as: implementing and working with contractor, reaching potential customers, expanding product consumption markets, technology and operation support.
Currently, APH is working with 7 investors, of which 5 are long-term financial institutions and two strategic investors. Investors are all from foreign countries like Korea, Japan, Germany and some multinational organizations.
Strategic move to conquer North American market
Sir, as far as I know, APH Board of Directors has had many working trips in the US to prepare for the plan to develop market for compostable products. Could you reveal what has been achieved and the company’s goal in the coming time?
We consider the US as a huge potential market for the development of compostable products. APH has had many working trips with organizations in the US, including strategic advisory firm The Asia Group.
At present, we have established a company in the US and we are forming plan to penetrate this market. In my opinion, social instability is temporary and the impact of the COVID-19 will not halt the medium to long term growth trend of eco-friendly products here.
Sir, might you give an overview of the attractiveness of compostable products market in Europe and the US, where you have been selling your products?
-Our overseas market has expanded significantly, from 5 countries (in 2019) to more than 20 countries at present, including the US, Canada and other European countries. This is a very potential market when these countries tend to switch gradually to environmentally friendly products. Since then, compostable products are perfect replacement.
According to research, in the next 3-5 years, environmentally friendly products will account for 20-30% of total plastic products worldwide.
We have solved the puzzle for compostable product price in best way. Therefore, in order to catch up with this global trend, we decided to invest in AnBio compostable plant, taking the initiative in materials, reducing production cost and creating more competitiveness for APH. Many familiar customers in these markets now have shifted to our compostable products.
The potential of the North American market as mentioned is enormous. But this is also certainly a very competitive market. Sir, what do you think about the opportunities & challenges for APH compared to competitors in this market?
-The North American market is larger than both Europe and Japan. Moreover, we can see the quick trend shifting to environmentally friendly products here.
At this moment, this market is competing for the supply of environmentally friendly products in the direction that benefit APH when we are one of the few enterprises in the world holding the patent for manufacturing compostable materials.
Sir, you have just mentioned “the patent for manufacturing compostable materials”, so what are the outstanding features of this project?
-We will have raw materials self-supply for production from the first to the last stage instead of importing raw materials from aboard to manufacture finished products.
So, what role will AnBio play in APH production system?
– This will be the first compostable material manufacturing plant in Vietnam that can supply and meet the demand for both domestic and foreign markets. The factory will completely change APH’s position, to be both a producer and a trader of green materials.
There have been a number of large partners in Vietnam coming to APH and questioning the trade of AnBio compostable material. Our goal of becoming Southeast Asia’s largest bioplastic group is in the near future.
Sir, according to the calculation of the investment project, what is the internal rate of return (IRR) of this project? In comparison with other plastic and packaging projects that APH has invested, are the profit margins superior?
-The rate of return of the project is 36% according to our estimates. Overall, this project is extremely important because it will help increase the efficiency of subsidiaries by helping reduce input costs and increase profit margins. The rate of return on a (consolidated) perspective of the Group is much higher than previous projects.
We are currently importing materials from Europe, manufacture products and then exporting them back to Europe. The raw materials self-supply will help APH save production costs about 30% for subsidiaries while the parent company still enjoys a gross profit margin of 25-30% of this project.
Difficulties provide a window of opportunity
Until now, we all know how COVID-19 has negatively impacted on the world economy while America is one of the most impacted countries and now concerns about the second wave of COVID. Thus, APH may encounter many difficulties in the coming time. Sir, will epidemics affect the progress and investment plan of the company?
– It can be said that COVID-19 influences our outreach activities and seeking new customers in this market. But the North American development plan is a long-term one, and we believe that Covid-19 will soon be contained here. Furthermore, the use of environmentally friendly products is an inevitable trend, so in the long-term, there is nothing to be worried about.
APH targets compostable products will contribute 40 – 50% to packaging revenue in the next 3-5 years.
Sir, can you disclose about the business situation of the two prominent subsidiaries (AAA and NHH) in the first 6 months. Is the influence of COVID-19 significant, especially on AAA’s international trade, or with NHH’s industrial supporting equipment production?-As we mentioned in the media earlier, the production of AAA has not decreased in quantity, especially the compostable products segment is still growing because these are essential consumer products.
Supporting industry is also affected by Covid-19 due to some customers suspending production but we forecast to grow strongly in the last 6 months.
What did APH Board of Management do to help subsidiaries overcome difficult times, especially to help them rebound when the market recovers?
-I hold the belief that “fire proves gold, adversity proves men “, we have nearly 20 years of experience in the market, facing many challenges but we overcame those obstacles to grow. I think that, under any circumstances, difficulties provide a window of opportunity. The recent successful IPO of APH is a testament to this. During tough times, we have been doing very well. So, there is no reason when the market recovers, we could not do better.
The Covid-19 outbreak has significantly changed the consumption habits of people all around the world as well as drastically influencing the global supply chain. In the first quarter of 2020, there was a Vietnamese enterprise specializing in manufacturing compostable products not only increasing the quantity but also the sales volume, receiving more orders from the US and Europe.
“At the moment, An Phat Holdings (APH) is confident with its capacity and competitive position to move to a new development stage with several investment projects focusing on key areas of compostable products & compounds, packaging, engineering plastics & building materials plastics, raw materials & chemicals for plastics industry, precision engineering & molding, industrial real estate, etc.” said Mr. Pham Anh Duong – Chairman of An Phat Holdings. An Phat Holdings will carry out Initial Public Offering (IPO) and have it shares listed on the stock exchange in 2020 to raise capital for the project of producing AnBio compostable material, taking the initiative in input materials along with reducing the product costs.
1. The only Vietnamese enterprise holding the patent for manufacturing compostable materials and the plan for IPO in 2020
Q: APH has been active in multiple sectors, including compostable products, supporting industries, packaging, logistics, etc. So what is the key sector contributing enormously to APH’s growth?
– APH has developed a closed ecosystem by taking the initiative in its input materials and outputs. AAA, our member which produces packaging and compostable products, accounts for almost 90% of APH’s revenue.
About compostable products, we have AnEco which are on shelves of many supermarkets, restaurants, hotels nationwide. The products have been also exported to many countries as they meet international standards.
About input materials, we cooperated with a South Korean partner, one of the five companies in the world holding the patents on compostable materials. Thus, APH has become the unique enterprise in Vietnam to produce such products. The building of the PBAT plant is aimed at reducing the selling prices of our products.
In the packaging sector, APH has developed subsidiaries. Of which, we have AAA is the producer and others are provider of materials and product trader.
In the supporting industries, APH has set a target to develop a value chain in the plastics industry and become a leader in the supporting industries in Vietnam. APH owns five companies serving its plan to take part in the global value chains.
Q: Can you share your plan to build a polybutylene adipate terephthalate plant?
-We have raised capital for a project to build a plant of polybutylene adipate terephthalate (PBAT) since 2019 and will start work on the project next year. The plant, when put into operation, will help An Phat Bioplastics (ticker: AAA), a key member of APH, produce compostable materials meeting the strictest international requirements on the environment protection. Once AAA can produce materials by itself, the selling prices of its products will be reduced.
The plant will be built within 18 months and completed by 2022, with an annual capacity of 20,000 tons and an investment of nearly VND1.5 trillion. APH sets a target that the revenue from its fully compostable products will account for 40%-50% of AAA’s total in 2023.
Q: How can the company mobilize capital for the project? Is it from the company’s IPO?
– As I have mentioned before, APH has raised capital for the project since 2019. However, many investors have expressed their interest in the company’s IPO, so APH has decided to launch an IPO this year to attract more investors. The company is working with the HCMC Stock Exchange on the IPO plan.
Q: Is the company confident about its plan to raise capital this year when the whole world is facing difficulties?
– Despite difficulties in the global market, our sector has not been affected much. On the contrary, AAA has received more orders from partners in America and Europe for its packaging products, bags, knives, spoons and forks as these are essential products for daily life.
APH has raised its foreign ownership cap to 100% and has completed negotiations with some strategic financial investors on their ownership in the company.
2. Ideal opportunity to expand market
Q: With the plan to build the PBAT plant for manufacturing AnBio compostable materials, how will the initiative in materials help APH develop sustainably?
– We are determined to develop APH into a leading hi-tech and environmentally-friendly plastics firm in Southeast Asia. All product development and production and business expansion plans must be aligned to this goal. The IPO and the PBAT plant project will help us take the initiative in input materials, which is the key to APH’s sustainable development in the coming periods.
In order to reduce the use of disposable plastic products, the Government will hike the environment protection tax rates on enterprises producing these products, hereby raising the prices of these products. Meanwhile, when we take the initiative in input materials, the prices of compostable products will be cut nearly to the prices of common plastic products, so consumers will be willing to use environmentally-friendly products.
Q: APH is the first Vietnamese enterprise to successfully produce fully compostable products meeting international standards. What is the company’s strategy in the local market?
The green consumption trend is developing strongly worldwide
In Vietnam, the Government is also working on a plan to reduce consumption of single-use plastic bags in supermarkets, restaurants and markets, so this is a potential market for APH.
We are focusing resources on the domestic market and expects the Vietnamese market will contribute 15% of the firm’s total revenue from production by 2023.
Q: How will APH access new partners in the supporting industries?
We have a plan to increase the number of accessories provided to existing partners. For example, we produced just a few accessories for Toyota 10 years ago but 30 accessories at present. When manufacturers tend to increase the localization rates of their products, we will have more orders to increase production of accessories for these partners.
In addition, the company will access new partners. As we have cooperated with firms which are well-known worldwide, such as Honda, Toyota, Samsung, LG and Panasonic, we will have more opportunities to work with other new partners.
Q: APH has recently ventured into the industrial real estate sector. Will the company develop other industrial parks or only the 45-hectare An Phat Complex?
-Some partners have worked with us on leasing land lots. In the second quarter of this year, APH has transferred some land lots and will continue transfer the remaining land lots in the An Phat Complex until the end of 2020.
Besides the An Phat Complex, we will invest in the Quoc Tuan-An Binh industrial park project, which will be 180 hectares large. We will clear the site for the project at the end of this year and put the project into commercial operation next year.
Q: The “China +1” trend is widely mentioned currently, what will APH do to catch these opportunities?
Both An Phat Complex and Quoc Tuan-An Binh industrial park are located on ideal positions in the northern key economic region, which is attractive to investors.
Especially, we offer one-stop services for all customers. APH, with experienced consultants, will support customers in finance, human resources, supporting industries, administrative procedures, business registration, customs and transport.
Our long-term objective is to develop these two industrial parks into hi-tech and eco-friendly complexes.
3. An Phat Holding will become the Southeast Asia’s leading high-tech and environmentally-friendly plastic group
Q: In 2020, APH still sets a higher profit target compared to 2019, what is the reason for the company’s confidence in its production and trading situation? In the last Covid-19 outbreak, did the company suffer any effects while the proportion of APH’s exports was still quite high, and regarding the supporting industries, especially the car and motorcycle sector, slowed down in the first quarter due to the epidemic?
In the first quarter of 2020, APH’s core subsidiary, AAA, did not experience any drop in quantity or even had an increase in the compostable product segment. The current epidemic will promote e-commerce, the shift of consumer trends from eating at restaurants to ordering fast food, which promotes the need to use gloves, knives, spoons, forks, etc.
In the supporting industry, Hanoi Plastic Joint Stock Co.,ltd (NHH) mainly serving the automobile and motorbike sector, has also been affected due to some customers’ production suspension. We expect the second half of the year will be a time of strong growth for AAA and NHH.
Furthermore, this year’s industrial real estate segment has maintained as stable as the previous year, expected to contribute 7% of revenue and 20% of profits to the total company’s.
Q: Your ambition of in the next 5 years?
-Since its foundation, our key member AAA has set an objective to become the largest plastic packaging enterprise in Southeast Asia and has now become such a company. From that, our next step is to become the largest bioplastics group in Southeast Asia withing the next 3-5 years, pioneering in the value chains, along with establishing and developing a sustainable business ecosystem.
Q: What steps does your company take to realize this ambition?
-In the short to medium term, we continue expanding our market share of compostable products in both foreign and domestic markets. We currently focus on the US market, strategically cooperating with US investors to expand the product range of bags, knives, spoons, forks, etc. Currently APH’s products are available in several major fastidious markets globally such as France, Romania, Italy, Australia, United States.
In the domestic market, we are presently focusing on retail channels, including Horeca and B2B channels.
APH’s partners all have strategies to expand the use of environmentally friendly products, our prospects in this area are very bright.
In the long run, by taking the initiative of environmentally-friendly materials, we can expand the market and reach the majority of customers. In particular, I expect the domestic market to grow stably, compostable products will quickly change the consumer habits when prices are significantly reduced.
In the supporting industry, we will diversify our customers outside the automotive – motorbike segment by increasing our business development with FDI electronics enterprises.
An Phat Holdings is one of the few enterprises in Vietnam and the world that are using state-of-the-art technology and inventions to compostable products.
Many businesses are eager to catch up with the emerging green consumption trend. However, not every business has strong financial capabilities and technology to produce compostable products in line with the international standards.
Indeed, there are many businesses producing compostable plastic products in Vietnam and in the world. However, given the lack of proper technology, many of these products still release microplastics into the environment.
Clearly, it is not easy to make 100 per cent compostable products that meet several strict international standards such as ASTM D6400 (US), EN 13432 (EU), EL 724 (KOR), ISO 17088, TUV OK Compost INDUSTRIAL (evaluation criteria for the “industrial composting” label) as well as TUV OK Compost HOME (evaluation criteria for the “home composting” label).
Among the thousands of Vietnamese plastic producers, An Phat Holdings (APH) has become the first enterprise to successfully produce 100 per cent compostable products. APH has made its AnEco compostable product series from corn-starch-based PLA (polylactic acid) biological materials along with other compostable materials.
AnEco compostable products are safe and eco-friendly with outstanding advantages such as short decomposition time from six to 12 months, without releasing any microplastics. The products also meet some compostability standards such as the TUV OK Compost INDUSTRIAL and TUV OK Compost HOME.
It is quite costly to develop eco-friendly products, so last year APH invested in a firm in South Korea to reduce expenses. The South Korean firm is among the few enterprises in the world holding the copyright for compostable materials. APH has gained a competitive edge in producing compostable products.
At present, APH is planning to build a factory manufacturing AnBio compostable materials at Nam Dinh Vu Industrial Zone in Haiphong. The factory is designed with a capacity of over 20,000 tonnes per year. Slated to be completed by the end of 2021, the factory will help APH to reduce the production costs.
The AnEco compostable product series, such as bags and gloves, are certified with the TUV OK Compost INDUSTRIAL and TUV OK Compost HOME standards. The product line has been awarded some other certificates such as BPI Compostable of the US, DIN Certo Compostable, and Biobased 50 – 85 per cent of Germany. Therefore, APH has holded a significant competitive edge in exporting its compostable products to several large foreign markets such as France, Romania, Italy, Australia, and the US.
APH has enormous potential and considerable opportunities in the packaging industry given that not many enterprises globally can manufacture these compostable products. According to the latest recent report, only four in the 10 leading companies can develop such products in France, Germany, Italy, and China. APH is the only enterprises in Vietnam as well as one of the five representatives in Asia which are members to the European Bioplastics Association.
Besides connecting with Korean partners, APH is drawing up a strategic plan to export its products to the US and North America. In the coming time, the group will expand its business portfolio into different sectors like agriculture, fisheries alongside consumer goods.
To reduce product price, APH is building a new factory to manufacture compostable products with a closed-loop production process.
