“Bio-On and all its employees are committed to giving continuity to the poly-hydroxy- alkanoates (PHAs) technology development project despite the difficult corporate moment.”
Crisis-hit Italian bioplastics producer Bio-on has announced that its CEO Marco Astorri has resigned.
The company made the announcement on 29 October.
Last week, an Italian judge had also revoked the board of Bio-on and appointed a judicial administrator to the company, as part of probe into false accounting and market manipulation.
Prosecutors in the northern city of Bologna opened an investigation in July over alleged market manipulation after US fund Quintessential Capital Management accused the company of accounting irregularities.
Bio-On makes its biopolymers from feedstock such as molasses, beet waste and sugarcane.
Bio-on’s Chief Executive and Chairman Marco Astorri was placed under house arrest on 23 October as part of the so-called ‘Plastic Bubbles’ probe, and has since stepped down.
It is not clear what will be happening next to Bio-on’s employees or production.
In a statement, the company said: “Bio-On and all its employees are committed to giving continuity to the poly-hydroxy- alkanoates (PHAs) technology development project despite the difficult corporate moment.”
The investigation will come as a disappointment for Bio-on. This is because the firm has recently been ramping up its partnerships with well-known brands to develop its bioplastics. For example, in May, it worked with fast-moving consumer goods giant Unilever to unveil a new line of cosmetics for sun protection made from ingredients containing biodegradable bioplastics.
In January, Bio-on teamed up with design specialist Kartell to unveil a new company called Eloxel in order to develop the use of bio-plastics in the electronics sector.