Biome Tech Regulatory News (BIOM)

24 Mar 2005 07:00

Stanelco PLC24 March 2005 24 March 2005 Stanelco PLC ("Stanelco" or the "Group") ASDA adopt Stanelco's GREENSEAL technology Stanelco PLC, the RF (radio frequency) applications group, is pleased toannounce that it has signed a binding contract with ASDA for a 12-monthexclusive agreement for the application of the Group's GREENSEAL tray liddingand thermoforming RF technology in the UK and Ireland. ASDA anticipate thatseveral hundred machines will be adapted to utilise the technology due to thesignificant benefits it delivers. The agreement follows successful trials at a number of different ASDA suppliersand will mean that the suppliers involved in the programme will, wherepractical, convert from traditional heat-sealing to Stanelco's revolutionary RFtechnology. The main benefits of Stanelco's GREENSEAL technology are: - An up to 20% lower cost of packaging material;- A higher integrity seal substantially reducing the possibility of packs leaking;- A removal of laminated plastics in favour of mono plastics, which can be easily recycled providing significant environmental benefits and- A saving of up to 70% on power usage in the traylidding/thermoforming machines. The costs associated with conversion will be greatly outweighed by the financialand other benefits indicated. It is expected that, according to plan, thisagreement will generate a revenue stream for Stanelco significantly in excess of£5m in the first year alone. Even before the first machine has been convertedASDA and Stanelco are working together to look at other areas of opportunity forthe technology. The 12-month agreement will commence from the first Monday following two weeksof further successful trials with three ASDA suppliers. This is expected to bein April. These commercial trials are in addition to the completed trialannounced on 1 March 2005. The underlying access agreement to adopt thetechnology will be between Stanelco and each of ASDA's packaged food supplierswith Stanelco taking on responsibility for installation and maintenance of thetray-lidding technology. Ian Balchin, Chief Executive of Stanelco commented: "We are delighted to have signed a formal agreement with ASDA. This is the finalstep of the first phase in the commercialising of this technology, and a verysignificant step in the transformation of Stanelco into an intellectual propertybusiness, exploiting the Group's core technologies. This contract is excellentnews for Stanelco and its shareholders and reflects the hard work put in by allour staff. We look forward to working with ASDA on the implementation." Tony Ruane, Technical Manager, Meal Solutions category at ASDA said: "This is a first to market for ASDA - real innovation. This could well turn outto be the biggest thing in packaging for years. The benefits for both theenvironment, our customers and suppliers from this technology are far reaching.The potential for the use of Stanelco's technology grows every time we look atit. Every visit to both stores and suppliers identifies new areas and ways inwhich the technology can be used. We are looking forward to working withStanelco." Ends For further information please contact: Ian Balchin, Chief ExecutiveStanelco PLCTel: +44 (0)2380 867100 Jonathon Brill/Billy CleggFinancial DynamicsTel: +44 (0)20 7831 3113 Notes to Editors: Stanelco Stanelco was founded in 1953 and is a world leader in the development of radiofrequency technologies for processing polymers for edible and packagingapplications and the design and manufacture of optical fibre technology,induction heating and dielectric welding equipment. The Company's current corebusiness is the manufacture of optical fibre using Radio Frequency (RF)technology. Stanelco has been applying its technology to other markets. Currentdevelopments include biodegradable air cushion packaging, sealing of low-costconventional plastics for food packaging, water-soluble detergent capsules,foamed starch trays, edible sachets and waste packing. ASDA ASDA was formed when two separate companies, Associated Dairies and the Asquithbrothers' supermarket chain Queen's, came together in 1965. ASDA Stores Ltd wascreated, a supermarket committed to offering its customers 'permanently lowprices'. The modern day ASDA now has 274 stores and 24 depots across Great Britain andhas been part of the Wal-Mart family since 1999. We offer Britain's best valueweekly shop with prices that are independently shown to be lower than our maincompetitors with an excellent mix of fresh food, grocery, clothing, home,leisure and entertainment goods. This information is provided by RNS The company news service from the London Stock Exchange