Cereplast Inc. (El Segundo, Calif., USA), a manufacturer of proprietary bio-based, compostable and sustainable bioplastics, announced on May 7 the restructuring of its global operations to align with current market opportunities which is expected to reduce annual operating expenses by $600,000 to $800,000 per year. This cost reduction will allow the company to dedicate this cash savings toward organic growth and the required working capital to service new clients.
To achieve these cost savings, the company is relocating its corporate headquarters to Seymour, Ind., USA, and is closing its offices in El Segundo. The company is also moving its European headquarters to its office in Milan, Italy, and is closing the office in Bonen, Germany, in order to strategically focus the company's efforts on the most immediate and dynamic markets for bioplastics in Europe. These changes are effective as of May 2013.
Mr. Frederic Scheer, chairman and CEO of Cereplast, says, "As we recently announced, our revenue for the first quarter of 2013 was approximately $900,000 to $1 million, exceeding the total revenue for the entire fiscal year of 2012. We continue to be optimistic about the revenue potential for the remainder of 2013, which will be derived primarily from Europe and the United States. After a thorough analysis, we determined that it would be prudent to consolidate our operations under one roof in the USA and under one roof in Europe. The global economy has fundamentally changed and we are quickly adapting our market approach and operations to maintain and build upon our competitive advantage. This measure has been taken by management with the best interest of our shareholders in mind, and achieves management's goal of further reducing our operating costs and improving cash flow. Additionally, our relocation will enable us to further focus our resources on developing the markets where we expect to generate significant growth in the coming years. We anticipate a smooth transition and expect these steps will improve our financial outlook going forward."