Paptic secures €23 million for sustainable packaging solutions

Finnish company Paptic receives €23 million from ECBF, Ecolab and Itochu to expand environmentally friendly packaging solutions and promote circular economy.

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

Paptic focuses on developing environmentally friendly, fiber-based packaging solutions as an alternative to conventional plastic packaging. These solutions will be able to be used in a variety of applications. The packaging industry has a global flexible packaging market 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 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 is fischertechnik, based in Waldachtal in the Black Forest, which is replacing plastic packaging with Paptic® materials for its bio-based "Animal Friends" construction kit. In addition, the material 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 international expansion, as well as serve the growing demand for innovative packaging materials.

Guillaume Gras, Investment Director ECBF

The European Circular Bioeconomy Fund (ECBF), launched in 2020, invests specifically 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 address global challenges such as climate change, plastic waste issues and resource scarcity.

The fresh injection of funds will not only help Paptic expand its materials portfolio, but also fuel the company's growth. These materials for flexible packaging will be made more available globally, 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 funding round, led by ECBF, is a significant step towards a more sustainable future for the packaging industry.