OMAHA — Two Nebraska companies have secured a multimillion-dollar deal to supply Wal-Mart stores with corn-based plastic for some food packaging.
Wilkinson Industries Inc., a food packaging company in Fort Calhoun, 12 miles north of Omaha, won the contract to supply Wal-Mart and Sam’s Club stores with environmentally friendly corn-based plastic containers for fruits and vegetables.
Wilkinson will work with NatureWorks LLC, a Cargill subsidiary that has a factory in Blair, to create the corn-plastic packaging.
Using corn-based plastic containers instead of the traditional oil- and natural gas-based plastics will save 800,000 gallons of gasoline and prevent 11 million pounds of greenhouse gas emissions, said Wal-Mart spokeswoman Tara Stewart.
NatureWorks opened in 2002 to develop Cargill’s corn-based polylactic acid, or plastic, products. The Blair plant uses 40,000 bushels of corn every day to produce the products, according to the Nebraska Corn Board.
These products degrade in a compost environment in 47 days and require 50 percent less fossil fuels to make than other plastics, according to Cargill.
Some environmental groups have criticized the Wal-Mart for its environmental practices.
In years past, for example, Wal-Mart has paid millions of dollars to settle violations of the Clean Water Act in other states.
The company says it is refining its production and distribution systems so it create less trash and is using packaging that creates minimal waste.
On its Web site, Wal-Mart says: “Zero net waste is good for business, it’s great for the environment, and it even creates jobs.”
With the corn-based plastic, Wal-Mart is in the green trend line with several chains, including natural foods chain Wild Oats Market, which switched some of its packaging to corn-based plastics in 2003.
“The writing, to some degree, seems to be on the wall,” said Ann Tucker, a spokeswoman for NatureWorks. “Retailers will say, ’If Wal-Mart is doing it, I better learn how to use this material.“’
Wal-Mart’s Stewart said the Bentonville, Ark.-based retail giant plans to gradually use the material in other products, such as gift cards and doughnut boxes. Wal-Mart is working with Cargill to research other uses.
Ray Massey Jr., a Wilkinson vice president, expects the material’s cost advantages to grow, especially if energy prices continue to rise.
“Wal-Mart sees petroleum only being a problem for years to come,” he said. “This has a stable price that doesn’t fluctuate based on supply.”
Posted in Business on Monday, October 24, 2005 7:00 pm
© Copyright 2010, JournalStar.com, 926 P Street Lincoln, NE | Terms of Service and Privacy Policy