GRIF small business fund helping to shape Guyana’s first bioplastics enterprise

Safraz Khan’s Amazon Bioplastics, which will see the production of biodegradable plastic for various applications, has targeted January next year as the time for commencing operations.

Located at La Union (commonly known as Crane) on the West Coast Demerara, Amazon is pursuing what many may regard as the important undertaking of replacing the accustomed non-biodegradable plastic bags, that continue to have a negative environmental impact, with biodegradable ones.

Khan’s was one of the first projects recommended to the Guyana Bank for Trade and Industry (GBTI) by the Small Business Bureau under the Medium and Small Enterprise (MSE) project. His $30 million loan, one of the first to be allocated within the confines of the project, is collaterized by the Bureau and is intended to serve as partial financing for the project.

Khan says the Chinese machinery and raw material for the manufacture of the biodegradable plastic is already in Guyana but he is awaiting the arrival of an engineer from China. Corn, sugar cane and cassava are among the range of raw materials from which the biodegradable plastic is made. Since corn is widely used for fuel and animal feed, it is an expensive product. However, corn will be the major ingredient used by Amazon Bioplastics until the technology for the other ingredients is fully developed. Khan said that in the second phase he will be seeking to manufacture the raw material for the biodegradable plastic locally, utilising, among other things, cassava.

For now, he is focusing his energies on the hoped-for pre-launch trials next month. While he expressed satisfaction with his engagements with the Bureau and GBTI, Khan voiced a measure of frustration with what he described as bureaucratic delays including, particularly, the protracted delay in securing a work permit for the Chinese engineer. Meanwhile, under the terms and conditions of his agreement with GBTI, Khan has already begun to repay the loan without having produced a single unit of the commodity.

Safraz Khan
Safraz Khan

But he is looking ahead to January, as once the trials are over, production will commence immediately.

At full capacity, the plant will produce two million bags per month. Besides the local market, Khan is hoping that other environmentally-conscious countries in the region will be interested in the product. He said that at least one business enterprise in Trinidad and Tobago has expressed an interest in the product.

Such knowledge as is available on the degradable packaging suggests that they may last at best, a few months after they are discarded. Not only do conventional plastic bags not degrade, but the emissions from the burning of plastics are environmentally unfriendly.

Without making a pronouncement on price, Khan said affordability will be a focus. A business which he currently owns, imports plastic bags from China and Trinidad and Tobago at around “four and five Guyana dollars” each, depending upon size and thicknesses, he said. Customizing carries an additional cost.

While he would concede that there is always a bottom line in business, Khan said his enterprise would seek to give service to Guyana in other equally significant ways. Whatever other developmental plans are put in place, Khan said these are likely to be negatively affected if account is not taken of the need for environmental safeguards.

Biodegradable packaging is widely believed to be a key long-term answer to the global environmental challenge. The packaging is manufactured primarily from plant materials which can include products as varied as orange peel, and starch.

The process of making biodegradable plastic begins with the degrading of the raw material after which, the mixture is poured into moulds of various shapes—bottles, cups, utensils, bags and left to solidify. Market trials over the years have revealed that the resulting products are safe and sturdy.

The son of rice-farming parents and a former student of the West Demerara Secondary School, Khan said the project will be executed in three phases. The third phase will be the manufacture of products to replace the controversial Styrofoam containers that are popular in the take-away industry.

In the course of planning the project, Khan made a number of visits to China and other countries to engage chemists and engineers who have been involved with the creation of the technology.

Khan said the second phase of the project provides an incentive for hinterland and riverain farmers to expand cassava production.

In the first phase, the project is expected to employ about 40 persons.

The ‘west side’ businessman believes that the expansion of the business community in Region Three now warrants the creation of an industrial area on the West Coast Demerara. Nor is this his first business enterprise, for the past 14 years he has owned Sitech, an information technology enterprise and in 2009 he acquired a Chester Fried Chicken franchise.

Last week Khan entertained a delegation from Norway whose visit and positive comments on the unfolding project had served as a particular source of encouragement. He is fervently hoping that that is a good omen.

Non-biodegradable packaging continues to be the bane of coastal Guyana’s existence as indiscriminate dumping of plastic and polystyrene wrappings continue to create blockages that result in costly flooding during rainy weather. Earlier this year the government unwisely postponed a mid-year deadline for the banning of polystyrene packaging.