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

PaperFoam, a Dutch company that manufactures sustainable, biodegradable, starch-based packaging, has secured a €2 million loan from Invest International to expand its production facility in the Czech Republic and strengthen working capital for its Malaysian and U.S. plants.

The Hague-based Invest International is a Dutch government-backed organisation that helps Dutch and Dutch-linked businesses overcome barriers by providing financial support, foreign market knowledge, and sector expertise.

Jeroen Plag, Chief Investment Officer at Invest International, said, “PaperFoam is a great example of a Dutch innovator that has travelled a difficult path from promising technology to an internationally scalable company. Our involvement dates back to 2020, when we supported the company during its first expansion into the Czech Republic. 

“With this new investment, we’re helping to enable the next phase of growth at a time when traditional financiers still view it as too risky. For the Netherlands, it’s crucial that we help green leaders in the manufacturing industry scale up. This way, we retain innovation within our own country and demonstrate that sustainability and international competitiveness go hand in hand.”

Founded in 1998, Paperfoam was founded by Vertis Holding, a former Dutch IT company. The Barneveld-based company is a global provider of biodegradable starch-based packaging solutions, with production facilities in the Netherlands, the Czech Republic, the United States, and Malaysia. 

PaperFoam b.v. is owned by PaperFoam Holding b.v. Since March 2023, Nissha Co. Ltd., a Japanese stock-listed company, has owned 30% of PaperFoam Holding b.v. The other 70% is owned by Sustainable Pioneers Holding b.v., a Dutch entity.

PaperFoam states that it develops packaging solutions based on starch and natural fibres as a fully fledged alternative to conventional plastic and paper. Using its patented foaming technology and natural raw materials, the company creates lightweight packaging with an “exceptionally low” carbon footprint. The material is also fully compostable, and the fibres can be easily recycled into paper.

PaperFoam Plus is thicker and stronger than PaperFoam and is designed as a sustainable alternative to EPS (Expanded Polystyrene). It offers protective qualities (drop-tested up to 5 kg), is up to 5 mm thick, and is compostable in both home and industrial composters.

The company serves customers in sectors such as consumer electronics, medical, dry food, and cosmetics.

Willem Derkman, CEO of PaperFoam, said, “Developing an innovative and sustainable alternative to traditional packaging requires time, investment, and partners who are willing to look further ahead. Thanks to the ongoing support from Invest International, we have been able to take important steps in our international growth. This funding helps us further expand our production capacity and efficiently serve new markets and clients.”

According to the company, production machinery from Dutch suppliers Kuyer Metaal in Nijkerk and Shuffle-Mix in Barneveld makes the expansion possible in part.

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