Benzinga | Dec 21, 2021 08:11AM EST

Karat Packaging Reports Expansion Of Its Logistic Services Unit Geographically, Has Placed Order For 10 Tesla Semi Trucks, No Terms Disclosed

Karat Packaging Inc. (NASDAQ:KRT), a specialty distributor and manufacturer of environmentally friendly, disposable foodservice products and related items, today announced it plans to expand its logistic services business geographically and that it has placed an order for 10 Tesla Semi trucks.



Karat Packaging currently has 86 trucks and trailers and provides third-party logistic (3PL) services to about 100 of its customers in California. The Company is planning to expand its logistic offerings geographically from its existing distribution centers in Texas, New Jersey and South Carolina in those regions, as well as further expansion in California.

"We are excited to incorporate alternative-fuel trucks into our fleet. This purchase represents our commitment to continue investing in environmentally friendly solutions," said Alan Yu, chairman and chief executive officer. "Adding to Karat Packaging's competitive advantage and the Company's distinguishing characteristics, we are pleased to offer additional 3PL services to new and existing customers, particularly during the current supply chain environment."

Tesla announced its newest innovation in transportation, Tesla Semi, a 100% battery-powered Class 8 semi-truck, in late 2017. The trucks are expected to have a range of up to 500 miles on a single charge, deliver a far better experience for drivers and significantly reduce the cost of cargo transport.