The Board of Investments (BOI) gave a Bulacan-based agro-processing firm its go signal to establish a P35-million sustainable packaging production facility.

The attached agency of the Department of Trade and Industry on Tuesday said it approved the application of Oikos Sustainable Solutions Inc. to set up a facility producing Hidrobags, which are sustainable packaging products alternative to paper and plastic bags.

Oikos, which has an annual capacity of 720,000 kilograms, will build the factory in Dona Remedios Trinidad Highway in Baliuag, Bulacan. Its commercial operations will commence in August.

The products to be produced by Oikos include shopping bags, dissolvable laundry bags, trash bags, keep bags and mailer bags.

The manufacturing process for Hidrobags is the same as that of petroleum-based bags. The products will have no plastic content and will use cassava starch and naturally derived vegetable oils.

The alternative product can degrade naturally in 180 days, even in landfill, and is compostable and water-soluble above 70 degrees centigrade.

"It can even be eaten by fish if thrown into the oceans. It is non-toxic, plastic-free, has no greenhouse effect, and is completely biodegradable," the BOI said in a statement.

Formed in December 2020, Oikos has entered into a licensing and distribution deal with Hidrobag producer Hidrobag Corp. S.A.

"Hidrobag is currently being produced in Costa Rica with the main office in Chile. The raw material is manufactured in Indonesia with machines coming from China," the BOI noted.

Oikos sees potential demand from companies seeking environment-friendly products, including supermarkets, convenience stores, hospitals, hotels and boutique shops.

The investment qualifies for incentives based on the recently enacted Corporate Recovery and Tax Incentives for Enterprises Act and the 2020 Investment Priorities Plan.

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