Casey Container Corp. (OTCBB: CSEY)
Detailed
Quote: http://www.otcpicks.com/quotes/CSEY.php
Financial
Snapshot:
Business: |
Plastic Container Manufacturing |
Exchanges: |
OTCBB |
Symbol: |
CSEY |
Current
Price (12/01/10): |
$.35 |
Company Overview
Casey Container Corp. is engaged in the design and custom manufacture of
biodegradable PET plastic preforms that become PET plastic containers, such
as bottles for water or other beverage and consumer products. The Company
is committed to developing container products that meet the demands of its
clients while addressing today's environmental issues concerning the
proliferation of plastic pollution.
The Company offers biodegradable plastic packaging solutions using the
breakthrough science of EcoPure® technology. In short, the Company
provides environmentally responsible plastic packaging solutions to assist its
clients in obtaining a competitive advantage in the marketplace. The
Company's corporate headquarters were established in Scottsdale, Arizona in January 2010 with plans to move to Mesa,
Arizona. Casey Container officially changed its name in January 2010 to reflect its new business direction.
At launch, Casey Container primarily serves the food, beverage and pharmaceutical companies that are eco-conscious and
understand the competitive advantage biodegradable plastic packaging offers in today's marketplace. The Company plans to
establish its first manufacturing plant in the U.S. to serve a growing list of customers with expressed interest in implementing a
100 percent biodegradable plastic packaging solution in 2011.
In March 2010, Casey Container entered into a non-binding Memorandum Of Understanding (“MOU”) to purchase the assets
of a manufacturing, distribution and sales company in the all natural, healthy, renewable, sustainably packaged household
cleaning products marketplace. Its mission is to provide effective, healthier and environmentally sound household cleaning
products in the most economical and environmentally friendly manner possible.
This company currently produces private label products for some of the largest, well known and most respected grocery chains.
The intent is for Casey Container to provide cash to expand, market and distribute the Company’s branded and private label
products as well as produce biodegradable packaging for its products. This would make it the first company to produce
healthier and environmentally friendly detergent and cleaning products packaged in a biodegradable container.
Industry Overview
It is estimated that more than 100 billion plastic bottles now find their way into landfills each year. When a traditional plastic bottle enters a landfill it can take thousands of years to break down, if ever. As plastic has proliferated over the past century, we have seen a profoundly negative impact on the environment.
Scientists are now concerned that the rate of decay in landfills could be even slower than previously thought. Some landfills are so tightly packed, the conditions are simply not optimal for facilitating product breakdown.
In order for plastics to biodegrade entirely, tiny microscopic organisms must find the material attractive for consumption. Traditional plastics are unattractive to microbes and therefore are never broken down.
Many products on the market claim to be biodegradable, but are in fact only compostable and do not break down in a landfill environment. In other cases, the product simply breaks down into smaller pieces (plastic flakes).
By bringing EcoPure™ to the PET bottle industry, they're able to offer a truly biodegradable PET product that features ALL of the benefits of traditional PET and breaks down in 1 to 5 years in anaerobic, aerobic and compost environments. Their products are covered in the MSDS and made only from FDA approved materials which are deemed food grade.
Products
Casey Container Products
Casey Container is a manufacturer of specialized PET preforms that can be blown into almost any shape/size container or bottle. Through the introduction of the EcoPure™ technology (which is added during the formulation phase), they are able to offer a unique, patented preform product line that offers the benefits of standard PET plastic, but offers a finished product that is 100% biodegradable and 100% recyclable.
Customers equipped with in house blow molding capabilities will find the process of blowing their preforms into high quality bottles comparable to that of conventional PET preforms, without modifications to current equipment.
The result is a cost effective, biodegradable custom packaging solution ideal for a variety of products: water, carbonated soft drinks, fruit juices, sports drinks, kitchen oils, detergents, household products, and many more.
EcoPure™ - The Biodegradable Plastic Solution
EcoPure™ is a second generation additive, which once added to a resin type during the manufacturing process, renders plastics biodegradable. Various American Standard of Testing and Measurement (ASTM) testing methods, including the ASTM D5511, which confirms that products will biodegrade when placed into an anaerobic environment, such as a landfill, have proven that EcoPure™ is biodegradable.
The ASTM D5511 has shown that EcoPure™ allows microbes to break down the structure of Polypropylene and Polyethylene at significant levels up to 45% in 14 days. The biodegradation process starts when the plastic is placed into the landfill and the microbes, which are attracted to the plastic, colonize on the surface and begin to digest and break down the plastic. The fact that EcoPure™ works via microbes makes this product stand out from the other biodegradable and degradable products, which are broken down by heat, moisture, UV, or mechanical stress. Once it has been placed into a landfill, EcoPure™ begins biodegrading and takes from approximately 1-5 years.
The EcoPure™ Advantage
Tests have shown that as little as 0.7% by load weight of EcoPure™ is needed to make a product biodegradable. This ensures that helping our environment is practical and affordable.
EcoPure™ works with every resin type tested thus far, and does not affect the physical properties of the products. Various trial runs have shown that EcoPure™ can withstand temperatures up to 550+ degrees F, which means that products such as ABS, SAN, Nylon, and Rubber can be made biodegradable with EcoPure™.
Bioplastics
What Is Biodegradable PET Plastic?
Working with Bio-tec Environmental, developer of the breakthrough EcoPure™ technology, they now have the unique ability to offer a revolutionary biodegradable PET plastic packaging solution that is FDA approved.
Until now two types of products have dominated this sector of the market: oxo-degradables and starch based PLA (Poly-lactic Acid) products. Oxo-degradables are an additive based technology which cause bottles to fragment from light, heat, moisture, mechanical stress and can only be used in polypropylene, polyethylene, and polystyrene (not in polyethyeleneterapthalate, or PET). Also, oxo-degradables do not actually biodegrade; they only break down into tiny toxic pieces of plastic which get mixed into our soil and waterways. This impacts plant and animal life, and in doing so, can contaminate our food supply.
PLA is a starch based alternative to traditional plastics and attempts to replace polypropylene (PP), polyethylene (PE), and polyethyeleneterapthalate (PET). But these PLA packaging options lack the performance of conventional PET plastic packaging and have not yet attained economies of scale. In fact, they can drive up the prices of essential food-supply commodities, such as corn.
Their products are cost effective and offer the same advantages as PET plastic packaging because it is PET. And in fact, the EcoPure™ technology used to make their plastic packaging solutions biodegradable can be used with polystyrene (PS), polypropylene (PP), polyethyeleneterapthalate (PET), polyethylene (PE), polyvinyl chloride (PVC) and most other types of polymer.
Their biodegradable PET solutions not only maintain the same physical properties as conventional PET plastic packaging, but can also be recycled alongside conventional PET. Many other biodegradable options on the market actually contaminate the PET recycling stream, creating added stress on recycling plants.
How do plastics biodegrade?
The EcoPure™ technology behind their products adds nutrients and other organic compounds that weaken the polymer chain and allow microbial action to colonize in and around the plastic. The bottles are then completely metabolized, turning them into inert humus (biomass), biogas (anaerobic) or Co2 (aerobic).
Thus, rather than requiring mechanical means such as heat and light to break down, their products biodegrade in one to five years through the microbial activity in compost and landfill environments.
Market Info
According to a November 23, 2010 report by IBISWorld, an independent research firm, the plastic bottle and container manufacturing business in the U.S. generated $9.9 billion in sales in 2009 from 185 enterprises. Of those, none manufacture biodegradable plastic bottles.
Demand for degradable products in the United States is projected to increase 16.6 percent annually through 2014, due in part to increased consumer demand for environmentally friendly packaging, according to an August 2010 report by The Freedonia Group.
Americans alone buy an estimated 34.6 billion single-serving (1 liter or less) plastic water bottles each year, of which nearly eight out of ten end up in a landfill or incinerator, according to the Container Recycling Institute.
The Clean Air Council (http://www.cleanair.org/Waste/wasteFacts.html) states that Americans throw away 2.5 million plastic bottles every hour. Only 27% of the plastic bottles sent to municipal waste sites are recycled, the rest end up buried. RecyclingFacts.org claims that it takes up to 700 years for conventional plastic bottles in landfills to even begin to biodegrade.
Environmental regulations are continuing to strain municipalities with only slightly more than 3,000 operating landfills still in existence today compared to over three times that level just a decade ago. Recycling has managed to help keep the remaining landfills open, though any further reduction in tonnage would be seen as a blessing by municipalities and with the pressure on consumer goods manufacturers to become 'eco friendly', the first biodegradable plastic bottle maker in the Country is sure to catch their eye and generate orders.
Growth Forecast
It is estimated that Casey’s biodegradable preforms and bottling plastics group is capable of producing growth in revenues from $1 million in 2010 to $52 million in 2014. The Company’s first contract announced last Friday, November 26 is a marquee turning point, and the total market size is simply enormous.
Driving that growth is the former CEO of Clearly Canadian and Jolt Beverages Corp., two highly successful consumer products manufacturers, Mr. Terry W. Neild. Behind Neild is Chief Financial Officer, Martin R. Nason, who is credited with helping build Vidal Sassoon from insolvency to a thriving brand name that was sold for $100 million. Alongside Neild and Nason is Robert Seaman, VP of Operations, with over 37 years experience in building bottling plants from the ground up. Mr. Seaman has installed, tested, repaired and run bottling equipment in 136 foreign countries and in all 50 states for everything from jelly to sun tan lotion and brake fluid to bottled water.
The Company’s acquisition of Mountain Green permits Casey Container to install its first in-house PET biodegradable plastic bottling plant in a company-owned eco-friendly product manufacturer that gives Mountain Green the advantage of being the first company to have its own plastic packaging become biodegradable. The manufacturing facility will also give Casey a demonstration resource for other manufacturers interested in using their biodegradable PET plastic bottles and is sure to give a competitive edge to inducing further sales.
Management Team
Terry W. Neild - Chairman Of The Board
Terry Neild is currently the President and Chairman of Taste Of Aruba Water, a private beverage company based in Phoenix, Arizona. He is past President and CEO of Clearly Canadian Beverage Corporation and Jolt Beverages Corporation, both successful retail specialty beverage and bottled water companies.
Over his impressive 35-year career as a business leader and innovator, Mr. Neild has built a depth of proven entrepreneurial expertise in a variety of industries. He is a seasoned leader who has guided the development of several start-up companies, bringing them to substantial success.
He has extensive knowledge in Mergers and Acquisitions and has personally been responsible for raising hundreds of millions of dollars for companies he has served. Mr. Neild, who is a Certified Management Accountant, has held a number of senior financial positions in three Fortune 500 companies.
Martin R. Nason - Chief Executive Officer and President
Marty has over 35 years as a Chief Financial, Chief Operating and Chief Executive Officer with strong financial, operational, strategic planning, manufacturing, marketing and distribution experience, mostly with high growth domestic and international private and publicly owned companies from startup stage to $165 million in revenues.
Marty has taken several companies public, negotiated sales and purchases of companies and raised capital and bank lines of credit. He was a founder and former Director and Chairman of the Credit Committee of an independent California bank.
He was Senior Executive Vice President and Chief Operating Officer for Vidal Sassoon, Inc., the international hair care and cosmetic company and joined when the Company was insolvent with $7 million in revenues thru its sale in 1983 for $100 million to Richardson-Vicks. Marty served as Chief Financial Officer for WCT Communications, Inc., a switch-based telecommunications company that grew during his tenure from $20 million to $150 million in three years, took it public and it was sold in 1996 to Rochester Telephone.
Marty started his own consulting company catering to consumer products companies in 1984 and also served as Advisor and Board member for several of clients.
Robert Seaman - Vice President - Operations, Director
Robert “Bob” Seaman brings a wealth of bottling and manufacturing industry experience to Casey Container International. He has held numerous leadership positions in his 37 years of work in manufacturing, mechanical engineering, and machine installation and repairs.
Mr. Seaman has installed, tested, repaired and run bottling equipment in 136 foreign countries and in all 50 states for everything from jelly to sun tan lotion and brake fluid to bottled water. In the water sector alone, Mr. Seaman has set up bottling plants for Fiji Water, Ozarka Water, Penta Water and many others.
He is adept at installing state-of-the-art equipment and maintaining it to obtain maximum quality and productions figures that meet and/or exceed requirements. For Casey Container, he will maintain production schedules and quality standards to more than adequately meet federal requirements.
Mr. Seaman will also maintain a running inventory of raw goods, along with finished goods inventory, keep all preventive maintenance records, and oversee daily machine maintenance checks.
He holds a Bachelor’s Degree as an I.E. from Purdue University and held the rank of Sgt. E-7 in the United States Army. Mr. Seaman volunteers with the Boys and Girls Clubs and the V.F.W. He is also a licensed pilot.
James T. Casey – Executive Vice President – Technology and Sales
James (Tom) Casey is a proven business leader who brings more than 30 years of experience in sales, marketing and distribution to his position as president and COO of Casey Container. Career highlights include a senior management role with U.S. Industrial Chemical Co. where he became very well versed in plastic extrusion methods, blow molding of plastic containers, shipping of industrial chemicals and regulations for shipping chemicals.
Prior to that, at Merck Darmstadt in West Germany, Mr. Casey lead marketing initiatives for the company's leading edge genetic engineering products. Mr. Casey and his team marketed to Genetic Research facilities at NIH, the US Food and Drug Administration, medical schools on the East Coast, leading pharmaceutical companies, and various research organizations.
He later served as National Sales Manager for Dearborn Utilities Chemical Corp. (a Div of W.R. Grace) where he was responsible for the sales and marketing of chemical additives to coal burning utility companies nationwide to reduce carbon emissions into the atmosphere.
Mr. Casey is an alumnus of Loyola College in Baltimore, where he received a B.S. in Chemistry and Biochemistry. He also served as a Naval Aviator from 1968 to 1971.
Recent CSEY News:
November 29 -
Casey Container Corp. Receives First Significant Order for Biodegradable Plastic Bottle Preforms
Company to Supply About 250,000 Preforms Weekly to U.S. Bottled Water Company
Casey Container Corp. (OTC.BB:CSEY - News) today announced the receipt of its first purchase order from a U.S.-based bottled water company providing for Casey to supply about 250,000 biodegradable preforms on a weekly basis over a year period, which will be used in the manufacture of biodegradable plastic bottles.
Casey Container holds a license to EcoPure®, a revolutionary second-generation proprietary and organic additive, which -- once added to a resin used to produce plastic bottle preforms -- renders the plastic biodegradable. The Company's biodegradable preforms are made of PET, HDPE and other conventional polymers, thus offering the same performance and cost effective advantages of conventional plastics. By introducing EcoPure® into the manufacturing process, Casey expects to produce a truly biodegradable PET, HDPE and other polymer products that break down into harmless bio-gases and bio-mass over time in anaerobic environments like landfills.
Demand for degradable products in the United States is projected to increase 16.6 percent annually through 2014, due in part to increased consumer demand for environmentally friendly packaging, according to an August 2010 report by The Freedonia Group. According to the Container Recycling Institute, Americans alone buy an estimated 34.6 billion single-serving (1 liter or less) plastic water bottles each year, of which nearly eight out of ten end up in a landfill or incinerator. According to RecyclingFacts.org, it takes up to 700 years for conventional plastic bottles in landfills to even begin to biodegrade.
Terry Neild, Chairman of Casey Container, stated, "This first order for our biodegradable preforms represents a significant milestone for our Company and one that will allow us to begin realizing immediate revenue from our new preform and bottling manufacturing facility upon becoming operational in 2011. Over and above this inaugural order, we are also in advanced discussions and negotiations with a wide range of companies interested in taking delivery of biodegradable preforms and/or bottles for their respective bottling and packaging requirements. We believe we can be in position to deliver approximately 35 million preforms and bottles in 2011, given that we meet our anticipated production ramp-up schedule."
About Casey Container Corp.
Headquartered in Scottsdale, Arizona, Casey Container is engaged in the design and custom manufacture of biodegradable PET, HDPE and other plastic polymer preforms, bottles and containers for use in the bottled water, beverage and consumer products industries. The Company is committed to developing container products that meet clients' demands while addressing environmental issues concerning proliferation of plastic pollution. The Company offers its biodegradable plastic packaging solutions using the breakthrough science of the EcoPure® additive and technology.
