Paptic secures 23 million euros for sustainable packaging solutions

Finnish company Paptic raises €23 million from ECBF, Ecolab and Itochu to expand eco-friendly packaging solutions and promote the circular economy.

Luxembourg - Finnish company Paptic, which specializes in environmentally friendly, fiber-based packaging solutions, has closed a Series A financing round. In cooperation with the European Circular Bioeconomy Fund (ECBF), the US chemical company Ecolab and the Japanese trading company Itochu Fibre Ltd., Paptic was able to raise 23 million euros in capital. The aim of this financing is to promote Paptic's growth and expand its materials portfolio.

Paptic focuses on the development of environmentally friendly, fiber-based packaging solutions as an alternative to conventional plastic packaging. These solutions are to be used in various applications. The packaging industry has a global market for flexible packaging worth over 200 billion euros per year, with plastics accounting for around 70 percent of the materials used.

We are pleased that our work and solutions to reduce the use of fossil-based raw materials in flexible packaging are being recognized as sustainable and commercially viable alternatives for today and tomorrow.

Tuomas Mustonen, CEO and co-founder Paptic Ltd

Taking into account the EU's recycling and climate targets, some companies have already started to switch from plastic packaging to sustainable alternatives. One example of this is the company fischertechnik from Waldachtal in the Black Forest, which is replacing plastic packaging for its bio-based construction set "Animal Friends" with Paptic® materials. The material also enables the production of environmentally friendly vegetable packaging that takes into account various sustainability aspects such as substrate, design, printing and recyclability.

Our investment will give Paptic the resources to accelerate its international expansion and meet the growing demand for innovative packaging materials.

Guillaume Gras, Investment Director ECBF

The European Circular Bioeconomy Fund (ECBF), launched in 2020, makes targeted investments in deep-tech companies that are driving the transition to a sustainable and bio-based circular economy. With this €23 million investment, ECBF aims to promote new materials based on natural fibers instead of fossil raw materials. This commitment aims to tackle global challenges such as climate change, plastic waste and resource scarcity.

The fresh injection of funds will not only help Paptic to expand its materials portfolio, but also boost the company's growth. These flexible packaging materials will be made more readily available worldwide and the industrial scaling of Paptic's new foaming technology will be accelerated. In addition, the company is committed to being carbon neutral by 2030 and this investment will help achieve this ambitious goal. Paptic's financing round, led by ECBF, is a significant step towards a more sustainable future for the packaging industry.