Thu. 7 Apr 2022, 10:06am ET Benzinga News, Contracts, Small Cap
- Karat Packaging Inc (NASDAQ:KRT) has entered a definitive joint venture agreement with Happiness Moon Co. Ltd. to establish a new corporation, Green Earth Technology, to build a new 180,000 square-foot factory in Taiwan.
- Karat will hold a 49% interest in Green Earth, with an initial investment of ~$6 million.
- The new facility will have robotic automation to manufacture compostable foodservice products from bagasse, a derivative of sugar cane pulp.
- Manufacturing will begin in 2H22, and the new plant is expected to produce approximately 7,560 tons of products in 2023.
- About one-half of the production will cater to Karat's customers, with the remainder for other customers in Asia and Europe.
- "The joint venture will enhance Karat's vertical integration in its supply chain and accelerate growth and margin expansion," said CEO Alan Yu.
- Price Action: KRT shares traded at $18.25 on the last check Thursday.