Concord, Ontario - Packaging group Vital Products Inc. has received two orders whose combined value is about $20 million, for its Bio-Based foam-in-place packaging product, and said it has been approached by another potential customer, a $300-million international manufacturer, to develop such a system.
Describing the orders as the "culmination of two years of research," Vital Products ceo Michael Levine added that, "now the market is responding with purchase orders."
One order is from a major North American maker and distributor of industrial packaging with annual sales of more than $140 million. "This customer is a serious player in this market, with five manufacturing or distribution centres across North America," Levine added, in a 4 Feb company statement.
These orders "validate our product and the move to green product lines," Levine continued, adding that they are a major step in Vital achieving its $20-million sales projection.
The company aims to ship the first order of Bio-Based foam over the next few weeks. Projections based on customer response "suggest that by end of year, the company could achieve sales in excess of $20 million," said Levine in the company statement.
Vital Products, a Canadian distributor of industrial packaging products, signed a sales and marketing agreement in October 2008 with Eco Tech Development llc of Nevada, a company which specialises in eco-friendly industrial packaging applications. Concord-based Vital Products agreed to market certain novel Eco Tech technologies, beginning with a new bio-based foam-packaging product.
In a statement at the time, Levene said, "The market for current urethane-type packaging foam is $900 millionand the company expects to gain a significant market share over thenext three years."