Paptic Ltd. Raises 3 Million Eur Funding
Paptic’s efforts in commercializing the novel woodfiber-based packaging material have received significant new backing in total of 3 million EUR in form of EU support and private investments. The company is also proud to welcome the new investor Charlotta Björnberg-Paul, who brings to the company her extensive experience and vast network within paper industry.
Non-degradable, poorly recyclable, easily littered and long-lasting short lifecycle plastic packaging material causes extensive accumulation of plastics in global marine ecosystems. About 1 trillion plastic bags are used every year, with 89% of them only once. Paptic addresses this global challenge and satisfies the needs of consumers, retailers and brand owners for sustainable, renewable and recyclable materials. The company has developed the novel wood fibre based material PAPTIC® that combines the renewability of paper with the resource efficiency and functionality of plastics.
The next step for Paptic is the scale-up of PAPTIC technology into commercial scale production. Paptic has been granted support from the EU Horizon2020 SME instrument for the engineering and development of scale-up. The project will receive approximately € 2.2 million of support during two years and the target is to inaugurate a commercial scale (above 10 000 tons / year) PAPTIC® paper machine during 2018.
In addition, Paptic Ltd has raised a second investment round from current and new shareholders. The investment round has brought to company new important strategic investor, Charlotta Björnberg-Paul. She will also join the board of directors of Paptic Ltd.
“Charlotta’s extensive experience and network within the global paper industry is a true asset for us and we’re glad she is on-board”, joys Tuomas Mustonen, CEO and founder of Paptic Ltd.
Every year 100 billion plastic bags are used in Europe alone. It is a market opportunity of almost three billion euros. The PAPTIC material is a direct response to the directive issued by the European Parliament, which aims to reduce plastic bags by 80 per cent over five years. Paptic Ltd is providing a solution to this global problem of plastic waste, especially accumulation of plastic waste in the oceans. With this new PAPTIC technology 95 percent of the raw material is renewable and biodegradable. In addition, the bags can be recycled with cardboard.
Paptic Oy is a Finnish start-up company, which was founded in April 2015. The company focuses on technology for sustainable development as well as the sales and marketing of wood-based renewable and recyclable products. Paptic’s goal is to scale-up the production of PAPTIC material to industrial scale in 2018.
The company currently employs three founders and seven employees. The company has raised private investments in total of EUR 2 million. The company has received investment from Proxy Ventures, Besodos Investors, VTT Ventures, Saxo Oy and nine private individuals.