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    Canadian bio-compound maker shuts on poor demand

    Canadian bio-compounds producer JER Envirotech International is discontinuing its activities, citing the economic slowdown in North America as the prime factor in its decision.

    In a statement issued to the TSX Venture Exchange in Canada, the company said it had been adversely affected by the growing economic troubles in the US and Canada. “We have attempted to remain open while we built the business, but sales failed to materialise before we ran out of funding,” said JER chairman and CEO Edward Trueman.

    He said the company, which is also listed on the Frankfurt Stock Exchange, will be closing down its production plant and business activities within 30 days.

    British Columbia-based JER produced injection mouldable and extrudable compostites based on conventional thermoplastics such as PE, PP and PS reinforced with bio-based fibres and fillers, including wood fibres and rice husks. It also had a range of materials based on recycled plastics, which it marketed under the EcoG name.

    JER's compounding technology was developed together with The National Research Council Industrial Materials Institute of Canada, an agency of the Canadian government. It held an exclusive manufacturing and marketing licence.

    In March this year JER successfully closed the first tranche of a non-brokered private placement on the Canadian TSX Venture Exchange that raised $84,000 (€54,000). In January, it reported a revenue of $919,381 (€595,000) and an operating loss of $1.28m (€0.82m) for the first quarter of its financial year (the three months ending 30 November 2008).

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