The company is seeing unprecedented demand from international markets for its biodegradable plastic substitute, according to press reports.

Plantic Technologies exports 70 per cent of its product to companies like Nestle, Lindt and Cadbury Schweppes, reported AAP, with its main use so far in trays for chocolate boxes.

Demand from European manufacturers, in particular, is strong because they are taxed on the proportion of non-degradable plastic they have in their packaging. This has boosted a growing market for biodegradable plastics made not only from corn but also other starchy plants.

Some producers of these alternative plastics expect the market to grow by about 20 per cent a year, thanks to demand from more environmentally aware consumers as well as recycling regulations.

In addition, a combination of pricing and retail uptake has led more and more processors to look at biodegradable natural polymer products as an alternative to polyethylene terephthalate (PET). The sharp rise in the prices for petroleum, a major component of PET, has made natural alternatives more competitive.

Plantic's product is derived from corn starch, which breaks down in just a few weeks and also dissolves in water.

The new facility in Altona will allow it to make up to 10,000 tonnes of material each year, making it one of the largest bio-material production facilities in the world.

The firm is also working on new applications. A project with Amcor aims to develop a biodegradable, flexible plastic packaging for confectionery. Plantic is also developing its portfolio of resins to include injection moulding grades in its portfolio.