MEDIA RELEASE 03 December
Papyrus makes inroads in Egypt
Papyrus Australia, the developer of a world-first technology that converts the
waste trunk of the banana palm into alternatives to forest wood products, has
entered into a memorandum of understanding ('MOU') with Egyptian investment
company Tawazon For Solid Management SAE.
The MOU is a step forward in assisting Papyrus in reaching its commercialisation
strategy to license its technology to suitable entities that will establish
banana veneer and banana fibre production factories in locations where banana is
Part of private equity firm Citadel Capital, Tawazon is an investment company in
the regional solid waste management industry. The company is composed of the
Egyptian Company for Solid Waste Recycling (ECARU) and the Engineering Tasks
Group (ENTAG), both leading waste management enterprises with extensive
operations in Egypt as well as international exposure to Malaysia, Sudan, Libya
Ted Byrt, chairman of Papyrus Australia, said the MOU represents a tangible step
towards establishing a factory in a prolific banana growing province with the
prospect of selling product into Europe.
"Significant work still needs to be done before any operations in Egypt become a
reality, but the memorandum of understanding is an important step in the
process," Byrt explained.
The MOU covers the establishment of entities - herein generically called Papyrus
Egypt and Papyrus Europe - as well as:
- The establishment of contracts to secure banana plantation feedstock for
the proposed factory and supply of that feedstock to the factory
- The establishment of contracts for supply by Papyrus of plant and
equipment for the proposed factory
- The establishment of sale and purchase agreements for product from the
proposed factory to be sold into Europe
- The corporate structure and ownership of the factory, Papyrus Egypt and
Tawazon has previously signed a non-disclosure agreement with Papyrus and has
been conducting due diligence on Papyrus and its technology.
Papyrus Australia Limited (PPY), which began trading on the ASX in 2005, was
founded in 1995 in response to an increasingly stringent environmental and
regulatory situation facing the paper industry.
The trunk of the banana palm was identified as an ideal source of fibre because
it is a renewable and abundant source that is available all year round and has
no other viable use.
The Papyrus technology does not contribute to the destruction of natural or
purpose-planted forests and does not consume any chemicals or water during
manufacture. The process is also much more environmentally-friendly and has
significantly lower production costs when compared to comparable products.
The Papyrus technology can produce alternatives to forest wood products such as
paper and paperboard, wood based panels, veneer and other fibre products. The
products are water-repellent, fire-retardant, are stronger and lighter than most
conventional fibre materials and have a distinctive look and feel.
More information on Papyrus is available at
Released for Papyrus Australia by Dennis Rutzou Public Relations (www.drpr.com.au)
For further information please call Kim Larochelle or Gill Asbury on (02) 9413