Bio-disintegrable Plastic

Bio-disintegrable plastic ("Bio-Plastic") is a hybrid plastic compound consisting of 40% PP resin (the raw material for the traditional plastic polymer) and 60% starch (an organic material) and a little additive. This compound will serve as the raw material for downstream consumer products in the form of grocery bags, cups, food containers.

The distinctive feature of this product is that when disposed as trash, the compound disintegrates within 90 days (i.e. the plastic chain breaks down with the natural decay of the organic material, with the remaining loose polymer resins being dispersed in the environment as part of soil mass). The effect in the environment is that the large heaps of the typical solid waste materials on dumpsites will be reduced naturally by half the volume over 90 days.

A custom-designed machine is needed to produce this product to combine PP resin, starch and the additives. The machine will require 3 workers per shift of work, or a total of 6 workers for two shifts of production per day. Operating skills are easily taught through on-the-job training.

The target market is the downstream disposable plastic manufacturers covering the whole of the Philippines. Manufacturers seek for cheaper raw materials and better profits. The ultimate market is the consumers who will gain satisfaction in using the environmentally friendly materials as well as the lower price of products.

The polymer can be sourced locally either through a sole local supplier or be imported. Starch is plenty in the Philippines since cassava is grown locally and manufactured into starch.

Customers will buy bio-plastic because it is superior to the traditional pure polymer compound:
• Environmentally-friendly product (a selling point to customers)
• At least the same quality (i.e. strength and usability) as the traditional polymer product when applied in downstream products.
• No added cost in the production of downstream products because existing plastic machines can be used.
• Cheaper than the traditional polymer compound.
• With cheaper raw materials, downstream manufacturers can be more price competitive in the market.

Marketing strategy:

(A) Direct marketing: the proven effective method to sell raw materials. We know and will approach the manufacturers in the downstream market to offer the product.

(B) Indirect marketing support: We will run PR ads about products made from bio-plastics and to require the downstream manufacturers to print a bio-plastic logo in every downstream product in order to foster brand recognition. The positive PR will help the manufacturers sell their products, which in turn increase orders for bio-plastics.

The competitors are the traditional polymer compound manufacturers. Although we will be offering a better product, we believe that the market for disposable plastic products will expand due to promotions and therefore will not harshly affect existing players. Nonetheless, we are willing to license the rights to these manufacturers and have a standard price for bio-disintegrable plastics in order to avoid fierce competition.

Bio-plastic is a “plastic with conscience.” When consumers use products made of bio-plastic, they will feel satisfied knowing that the product is helping solve the solid waste management problems, with consequential benefits to people’s health and safety, farmer’s employment and income. In addition, the comparable quality but cheaper price of bio-plastics over traditional polymer is a unique feature of the product in its class and will attract downstream plastic manufacturers to use it.

Ferdinand Sia (Team Lead) – He has had more than 9 years of full time work experience: 3 years in international development at the Asian Development Bank where he develops regional macro-financial reports for Asian deputy finance ministers, and 6 years managing corporate finance and initiating operational changes in the private sector. He concurrently teaches economics and statistics for undergraduate and graduate students at the Ateneo Economics Department and the Ateneo School of Government. He is the President of the Ateneo Alumni Scholars Association (AASA), which provides scholarships to college students.

Richard Gocuay – The maker and patent holder of bio-disintegrable plastic. A seasoned entrepreneur, he has put up 2 companies and 2 patents. The first company that he put up and sold has supplied plastic materials to big companies such as Procter and Gamble. While attending to his new business, he is currently a New Product & Business Development Manager of another company--PPC Group of Companies. Richard is a member of the Board of Trustees of W.J. Schmitt Foundation, Inc., which promotes research and development in chemistry and industrial products, and a member of the Executive Committee of AASA.

Gmelina Guiang – A development professional with more than 7 years experience in development projects in promoting private sector development, economic reforms, and infrastructure, most recently as Sector Manager for Economic Policy and Reform Advocacy, a USAID funded project. Ms. Guiang has done research on microfinance and directed credit programs for micro and small entrepreneurs. She also helps her family-owned elementary school solicit funds for the tuition fees of scholars from the depressed and poorest communities in our city.

Quality of living standards: The bio-disintegrable plastics will reduce the volume of solid polymer wastes by more than 50 percent. This will provide the following benefits:
•Reduce the health hazards to nearby community due to proliferation of bacteria/viruses
•When used to replace styrofoam packaging, it will prevent human exposure to butane (styrofoam is made from butane) when burned (new Styrofoam technology no longer emits CFC, which is harmful to the ozone layer, but is replaced with butane, a health hazardous chemical)
•Prevent landslides of solid wastes that can destroy nearby households and kill people
•Reduce land space necessary for dumpsite and treatment of solid wastes, while increasing space for more productive use
•Less frequent floods due to fewer clogs in drainage brought about by plastic

Direct and indirect local employment:
•Direct employment of 10 people for bio-plastic manufacturing in 3 years
•Indirect employment through increasing need for cassava farmers (estimated at 30 farmers per 1% market share) due to increasing demand for starch
•Additional employment for traders and merchants.

Direct and indirect local income:
•Increase in local income due to direct and indirect employment, and the multiplier effect of local spending for starch
•Savings in foreign exchange because less petroleum (the raw material for polymer) will be imported.
•Savings in government spending for treatment of solid wastes

Education (Knowledge and skills)
•The advertising for bio-plastic and downstream products will promote development of technology for practical use.