South Wales Paper straw maker for customers including McDonald’s, KFC and Starbucks, has secured a new multi-million-pound funding boost support its growth plans.
The £6m facility for Ystrad Mynach-based Transcend Packaging, from alternative lender Growth Lending, will provide the business with the working capital to expand internationally into new markets and reach new global brands.
It will also support the firm’s continuous investment into innovation and product development to remain a leading disrupter in the global packaging market.
The business, which also has a site in Italy, provides a range of sustainable packaging solutions which are either recyclable or compostable. It is leading producer of paper straws in the UK and across Europe and provides these and other items, such as drink cups, to global brands.
Justin Bailes, director, at Transcend Packaging said: “It’s an extremely exciting time for the business following a series of award wins, and this funding will enable us to continue assisting leading international brands as they transition their packaging portfolios away from single-use plastic by providing high-quality alternative packaging.”
Growth Lending provides funding for growth, working capital and mergers and acquisitions. Vicki Taylor, principal, at Growth Lending, said: “Transcend is a leading innovator in the sustainable packaging space and we are pleased to be supporting the business with its mission. Our funding comes after a period of impressive growth, and we very much look forward to watching them go from strength to strength.”
Transcend recently announced a strategically tie-up with Silicon Valley-based Zume, a global provider of compostable packaging solutions, to bring moulded fibre products on a large-scale to Europe.
The multi-million-pound deal will see one of the largest specialist moulded fibre production facilities set up in Europe - with the ambition to save billions of pieces of single-use plastic from landfill annually.
The new facility will producing 500 million units of moulded fibre snap lids for hot beverage cups by September next year - enabling large global food and beverage companies and leading QSR (quick service retail) brands.
Asked whether the facility, which will employ 300, will be located in Wales, a spokesperson said: “Site assessments regarding exact location are currently being conducted and Transcend are expecting to be able to announce the final location soon.”
On announcing the partnership with Zume, chief executive of Transcend Packaging, Lorenzo Angelucci, said; “We’re excited to work with Zume – using world-leading technology, as they have been instrumental in helping some of the biggest global brands move beyond plastics and EPS (expanded polystyrene) foam products.
“Through our partnership, and by creating a state of the art production facility in Europe, we hope to continue this hard work and encourage businesses in Europe to take the next step, challenge their perceptions and showcase how viable new alternatives can be in meeting both performance and customer expectations.
“As we look ahead to scaling into new markets and international production in the early part of 2023, we knew it was vital to select a company matching our ethos and mission while providing the logistical infrastructure and capabilities to make this vision come true. Zume is that perfect fit. It is clear there is a bright future for sustainable packaging that is aligned with current and pending legislation as more brands challenge their current assumptions and look for creative alternatives.”
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