PaperFoam secures €2 million loan to scale sustainable packaging made from starch and natural fibres

Dutch biodegradable packaging manufacturer PaperFoam has obtained a €2 million loan from Invest International to expand its production facility in the Czech Republic and bolster working capital for its plants in Malaysia and the United States. Invest International, a Dutch government-backed organization, provided the funding to support Dutch and Dutch-linked businesses in overcoming obstacles through financial assistance, foreign market insights, and sector expertise.

Jeroen Plag, Chief Investment Officer at Invest International, praised PaperFoam as a Dutch innovator that has progressed from a promising technology to an internationally scalable company, with his organization's involvement dating back to 2020 when they aided the company's initial expansion into the Czech Republic. Plag emphasized the significance of aiding green leaders in the manufacturing industry to scale up, retaining innovation within the Netherlands and demonstrating that sustainability and international competitiveness can go hand in hand.

Established in 1998 by Vertis Holding, a former Dutch IT company, PaperFoam is a global provider of biodegradable starch-based packaging solutions, with facilities in the Netherlands, Czech Republic, United States, and Malaysia. PaperFoam b.v., which is owned by PaperFoam Holding b.v., was 30% owned by Japanese stock-listed company Nissha Co. Ltd. as of March 2023, with the remaining 70% held by Sustainable Pioneers Holding b.v., a Dutch entity.

The company creates packaging solutions based on starch and natural fibers as a fully viable alternative to conventional plastic and paper, utilizing patented foaming technology and natural raw materials to produce lightweight packaging with an exceptionally low carbon footprint. The material is also fully compostable, with fibers that can be easily recycled into paper.

PaperFoam Plus, a thicker and stronger version, serves as a sustainable alternative to EPS (Expanded Polystyrene), offering protective qualities, up to 5 mm in thickness, and compostability in both home and industrial composters. The company caters to sectors including consumer electronics, medical, dry food, and cosmetics. PaperFoam's CEO, Willem Derkman, credited the ongoing support from Invest International for enabling important steps in international growth, stating that the funding aids in expanding production capacity and efficiently serving new markets and clients.