Australia-based Cardia Bioplastics has established a new film and bag manufacturing facility in São Paulo, Brazil.
The new facility, which has been leased, is slated to commence operations in September 2014.
The company has taken vendor finance for a one-year period to fund the acquisition of production machinery, which is worth about A$750,000.
Cardia's new facility has an annual capacity to produce 500 million retail carry bags, which is about four times more than that of its manufacturing facility in Nanjing, China.
Cardia holds supply contracts with Brazilian retailers, such as Ricoy Supermercados and Drogaria Araujo.
Cardia Bioplastics Latin America managing director João Paulo Mignot said: "With our own production coming on stream, we are now poised to deliver the increasing orders that we have been receiving, whilst further growing the business."
Cardia Bioplastics chairman Richard Tegoni said: "This represents a key milestone in the implementation of our business strategy to establish a finished products division with its own dedicated resources and manufacturing capability in key markets.
"The vertical integration from Cardia Biohybrid resins to Cardia Biohybrid films and bags ensures product quality, control of supply, improved margins and enhanced cost structures that underpin Cardia's global growth strategy".
Image: Cardia Bioplastics has set up a new manufacturing facility in São Paulo, Brazil. Photo: courtesy of Cardia Bioplastics.