Karat Packaging Forms JV To Build New Factory In Taiwan

Karat Packaging Inc KRT has entered a definitive joint venture agreement with Happiness Moon Co. Ltd. to establish a new corporation, Green Earth Technology, to build a new 180,000 square-foot factory in Taiwan.
Karat will hold a 49% interest in Green Earth, with an initial investment of ~$6 million.
The new facility will have robotic automation to manufacture compostable foodservice products from bagasse, a derivative of sugar cane pulp.
Manufacturing will begin in 2H22, and the new plant is expected to produce approximately 7,560 tons of products in 2023.
About one-half of the production will cater to Karat's customers, with the remainder for other customers in Asia and Europe.
"The joint venture will enhance Karat's vertical integration in its supply chain and accelerate growth and margin expansion," said CEO Alan Yu.
Price Action: KRT shares traded at $18.25 on the last check Thursday.