Struggling bioresin maker Cereplast Inc. is finally getting some new revenue, and it has government regulation in Italy to thank.

The El Segundo company, which supplies resin used to create environmentally friendly plastic packaging, has been waiting for the Italian government to tighten restrictions on the use of non-compostable resin. Now the government is moving forward on applying the regulations.

Italy’s parliament voted last month to confirm proposed sanctions on companies using traditional plastic bags and require a switch to bioplastic or other alternatives. Cereplast said last week it generated $500,000 in new business from clients in Italy in the previous six weeks in anticipation that the legislation will go into effect.

“Until we have continued growth, we will not say we are satisfied and it’s too early to say we’re out of the woods, but we’re doing much better than we were a few months ago,” said Chief Executive Frederic Scheer.

The company’s stock closed at 3 cents Jan. 23, more than double the previous week’s close. Shares had traded as high as $59 in 2006.

The European debt crisis hit the company hard in 2011. Before the Eurocrisis struck, Cereplast made half its sales to Italian clients.

The company’s sales have shrunk for the last four quarters. In November, it reported a third quarter net loss of nearly $10 million compared with a loss of $3.6 million in the same quarter the previous year.