Cabka closes multi-year agreement with leading US-retailer for supply of reusable foldable plastic containers

Cabka closes multi-year agreement with leading US-retailer for supply of reusable foldable plastic containers

Cabka N.V. (“Cabka” or the “Company”), a leading integrated circular production company, listed at Euronext Amsterdam, has entered into a long-term supply agreement with Target, a leading US-based general merchandise retailer, with nearly 2,000 stores in the US, securing the clients supply of reusable foldable plastic containers.

Customized solutions focus

Over the past three years Cabka developed and tested the reusable large foldable container solution in close cooperation with Target, applying Cabka’s Intellectual Property and Target’s logistical expertise. The development is an excellent example of Cabka’s innovative customized solutions strategy, providing Target with an all-tailormade solution for heavy duty reusable plastic containers.

Cabka and Target enter into a multi-year agreement, representing a significant value in future revenues for Cabka. The initial order represents approximately EUR 13 million in 2022 revenues for Cabka. Cabka expects further orders on a quarterly basis.

The partnership between Target and Cabka demonstrates Cabka’s growth strategy in the US, especially leveraging the opportunities in the large container and customized solutions segment

Enabling the circular economy

The large foldable containers are made from 100% recyclable high-quality plastics and are designed for extreme reusability. The usage of the units creates significant efficiencies in transport and logistics enabling the circular economy by:

• eliminating the usage of the single-use packaging items from entering the landfill, reducing solid waste;
• eliminating the need to recycle or remanufacture single use packaging, reducing carbon (greenhouse gas) emissions;
• superior product protection offered by the units resulting in lower product damage and waste;
• enhancing the efficiencies of return logistics by allowing at least 4 times as many empty containers in a truck;
• closing the loop by taking back end-of-life containers for recycling.

With this supply agreement, Cabka is providing support for some of Target’s long-term recycling needs and using various waste as feedstock for future production.

About Cabka

Cabka is in the business of recycling plastics from post-consumer and post-industrial waste into innovative reusable pallets- and large container solutions enhancing logistics chain sustainability. Cabka is leading the industry in its integrated approach closing the loop from waste, to recycling, to manufacturing. Backed by its own innovation center it has the rare industry knowledge, capability, and capacity of making maximum use bringing recycled plastics back in the production loop at attractive returns. Cabka is fully equipped to exploit the full value chain from waste to end-products.

Cabka employs some 700 FTE in Europe and the US recycling 150 kton of plastics into some 10 million pallets and 200,000 large containers realizing EUR 171m in revenues, in 2021.

Cabka is listed at Euronext Amsterdam as of 1 March 2022 under the CABKA ticker with international securities identification number NL00150000S7.

About Target

See for more information the Target company website at www.target.com.

Disclaimer

The content of this press release may include statements that are, or may be deemed to be, ''forward-looking statements''. These forward-looking statements may be identified by the use of forward-looking terminology, including the terms ''believes'', ''estimates'', ''plans'', ''projects'', ''anticipates'', ''expects'', ''intends'', ''may'', ''will'' or ''should'' or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements reflect the Company's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Company’s business, results of operations, financial position, liquidity, prospects, growth or strategies.

Readers are cautioned that any forward-looking statements are not guarantees of future performance. Given these uncertainties, the reader is advised not to place any undue reliance on such forward-looking statements. These forward-looking statements speak only as of the date of publication of this press release. The Company undertakes no obligation to publicly update or revise the information in this press release, including any forward-looking statements, except as may be required by law.

This document contains information that qualifies as inside information within the meaning of Article 7(1) of Regulation (EU) No 596/2014 on market abuse.