The decision follows the continual delay in developing the manufacturing process

The decision follows the continual delay in developing the manufacturing process

International packaging group Huhtamaki is to terminate its joint venture with US biodegradable technology firm EarthShell. The Finland-based firm said the development of the manufacturing process, which was EarthShell’s responsibility, had been repeatedly delayed.

The venture was established in 1999 to cover European and potentially Asian markets with plans to build a plant in Gцttingen, Germany. Huhtamaki said there were no charges associated with the write-off.

EarthShell was optimistic about resolving the manufacturing problems. Last week it announced a memorandum of understanding with US firm Hood Packaging to license the manufacture and distribution of EarthShell food service wraps and similar products in North America.

The companies said they could reduce manufacturing costs by around 50%. Hood Packaging expects to begin commercial production in the first quarter of 2004.