Symphony Environmental Technologies PLC (AIM:SYM) said a legal win in Peru has “significant implications” for commercial growth in the country and in Latin America generally.
Following legal action by its distributor in Peru against the local Ministry of Production, Symphony said a clear distinction has now been officially acknowledged between oxo-degradable and oxo-biodegradable technologies, with official confirmation that oxo-biodegradable technology does not leave microplastics behind.
At the hearing, INDECOPI (the Public National Institute for Free Competition and Protection of Intellectual Property) resolved that there is no bureaucratic barrier against oxo-biodegradable technology, because the prohibition in a 2021 decree regulating biodegradable plastic bags was against oxo-degradable plastic and not against oxo-biodegradable plastic. The Ministry also recognised the ruling.
Michael Laurier, chief executive of Symphony, said: “This declaration in Peru is a significant event for Symphony, as for the first time in Latin America, a government institution has officially acknowledged the distinction between oxo-degradable and oxo-biodegradable technologies, and the fact that d2w does not create microplastics.
“We are confident that this confirmation will reassure manufacturers and end-users alike as to the validity of d2w as a cost-effective biodegradable alternative to ordinary plastic.
“Our local distributor expects that this will generate new d2w customers and increased sales in Peru, and we believe this should also be the case for the whole Latin America region."
As well as having implications for growth, Symphony said the legal action also vindicates its long-term and ongoing advocacy strategy in the region, based upon transparent and technically-led engagement with legislators and opinion-formers.