In April 2022, Karat by Lollicup™ announced a definitive joint venture agreement with Happiness Moon Co., Ltd to launch a new corporation called Green Earth Technology in Taiwan. This investment establishes Karat’s commitment in producing and supplying eco-friendly disposable foodservice products.
The 180,000 square-foot hi-tech industrial unit is currently in the final stages of construction and is intended to be ready by the end of 2022. The facility will have programmed robotic automation to manufacture compostable foodservice products made from bagasse.
Most bagasse products in the US are currently imported from China. The joint venture will increase Karat by Lollicup™’s vertical incorporation in its supply chain and hasten growth and margin expansion. It is also an important initiative in maintaining to further enhance green product offerings. In addition, this will promote the company’s objective in expanding the use of environmentally friendly and compostable products to encourage businesses and consumers to transition toward more sustainable living.
The new plant is anticipated to manufacture approximately 648 containers of take-out boxes, plates, bowls, tableware, and other bagasse products in 2023. This is equivalent to about 7,560 tons of products. Around half of the production will be allocated for Karat’s consumers.