Papyrus signs Partnership Agreement with Al Ahram in Egypt to enable the transition from plastic to banana fibre based packaging - the first such transition worldwide and the beginning of a new era of sustainable packaging products in Egypt. PPY has executed a new business Partnership Agreement with Egyptian corporate entity "Al Ahram for Plastics Manufacturing" based in Sohag, Egypt, intended to establish a new manufacturing facility in Sohag to manufacture moulded fibre products utilising 100% banana fibre produced in Sohag by Papyrus Egypt, being the beginning of the transformation of the existing and substantial Al Ahram business from plastic to fibre based packaging, to service existing customers. The Partnership Agreement requires the preparation of a Business Plan by Al Ahram with input from Papyrus Australia. The Business Plan will determine the capital requirements necessary to establish the new fibre products manufacturing facility. Following completion of the Business Plan, a new joint venture company will be established in Egypt with Al Ahram holding 65% equity and Papyrus Australia holding the remaining 35%. The raw material required for the production of various moulded fibre packaging products at the new JVC factory is refined banana fibre pulp which will be supplied by Papyrus Egypt on commercial terms to be agreed. It is anticipated Al Ahram will gradually replace the production of its plastic packaging products with similar moulded fibre products to be manufactured at the JVC facility utilising Papyrus Egypt banana fibre pulp. Under the Partnership Agreement, Al Ahram will be responsible for the management and operation of the JVC facility, including responsibility for sales, marketing and distribution of the moulded fibre packaging products to existing customers, the detail of which will be determined in the Business Plan. The parties
are absolutely confident that the JVC will be profitable and will be the forerunner of other like projects in Egypt.