Symphony Environmental's (SYM) Share Price Surged 6.4%. Here’s Why.

Key points:
The Symphony Enrvionemnetal share price surged 6.4% today.
The company just won a legal battle in Peru with significant results.
Should you buy SYM shares? Read on to find out.

The Symphony Environmental Technologies plc (LON: SYM) share price surged 6.4% after announcing that the legal action taken by its Peruvian distribution against the government proved that its oxo-biodegradable products did not leave any microplastics behind, unlike oxo-degradable plastics.

The resolution by INDECOPI (Public National Institute for Free Competition and Protection of Intellectual Property) indicated that Peru’s Ministry of Production did not have a rule against oxo-biodegradable plastics because the prohibitions in a 2021 Decree regulating biodegradable plastics were against oxo-degradable plastics.

Also read: 5 Best Environmentally Friendly & Ethical Green Stocks.

The outcome of the legal action will be critical to Symphony Environmental’s commercial expansion in Peru and the Latin America region at large. The ruling is also evidence that the company’s products do not have the same negative impact that other similar technologies targeted at reducing the impact of plastics on the environment have.

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Symphony produces a wide range of biodegradable plastics such as biodegradable bin bags, food bags, refuse sacks, sym fresh food bags, and water-soluble laundry bags. The company’s products are produced using its proprietary d2w technology and are manufactured to the highest standards.

The recent ruling also highlights the effectiveness of Symphony’s corporate strategy of engaging legislators and opinion shapers in the region via technically-based transparent dialogue. The ruling also showcases the difference between traditional oxo-degradable plastics and Symphony’s advanced oxo-biodegradable plastic.

The company also supplies masterbatches to manufacturers who can make the final products for consumers using its technologies.

Michael Laurier, Symphony’s CEO, said: “This declaration in Peru is a significant event for Symphony, as for the first time in Latin America, a government institution has officially acknowledged the distinction between oxo-degradable and oxo-biodegradable technologies, and the fact that d2w does not create microplastics. We are confident that this confirmation will reassure manufacturers and end-users alike as to the validity of d2w as a cost-effective biodegradable alternative to ordinary plastic.”

Symphony shares look pretty attractive at current prices since they are trading above a crucial long-term support level.

*This is not investment advice. Always do your due diligence before making investment decisions.

Symphony Environmental share price.

Symphony Environmental shares surged 6.43% to trade at 16.23p, rising from Friday’s closing price of 15.25p.