Ystrad Mynach sustainable packaging venture Transcend Packaging has joined forces with one of Japan’s biggest firms to exploit huge global opportunities being created as the market shifts from plastic to sustainable paper and fibre-based products.
As part of the strategic partnership ITOCHU Corporation, a leading global provider of pulp paper products with annual sales of $100bn, has invested $10m in the company, for an undisclosed equity stake, that will help deliver new paper and moulded fibre products. The investment marks the latest strategic expansion for Transcend Packaging as it looks to extend its reach into new markets from Asia to North America.
Both firms have the ambition to save billions of pieces of single-use plastic from landfill annually as brands move to enhance how their packaging performs at the end of their useful life. The partnership is also a significant milestone as ITOCHU increases its focus on the eco-friendly, wood-fibre-based material business.
The tie-up will also support Transcend’s capabilities with its existing products and is a key component in the implementation of its previously announced plans to build one of the largest moulded fibre production facilities in Europe, which will initially focus on snap lids for hot beverage cups. The precise location of the new facility, which will create 300 new jobs, has yet to be confirmed. Transcend wouldn’t comment when asked if the facility could be in Wales.
Its existing Ystrad Mynach plant, whose products includes paper straws for global brands including McDonald’s and Starbucks, currently employs 200. Transcend employs a further 100 at production facilities in Italy and Eastern Europe.
Set up in 2017, it has developed a strategy to build its geographic presence through existing partnerships and strategic investment globally.
Moulded fibre is the natural alternative to plastic in multiple applications and is well positioned to meet both brand preferences and emerging legislative and regulatory requirements.
In addition to supplying paper and pulp materials, ITOCHU will also act as a strategic partner in supply chain management for Transcend. The company also aims to expand its environmentally friendly packaging business in Japan through the collaboration.
Most Read
Chief executive of Transcend Packaging, Lorenzo Angelucci, said: “Sustainable innovation and an evolving regulatory landscape are continuing to shift priorities in packaging, and we are working with a wide range of leading brands to enhance the sustainability of their packaging portfolios. ITOCHU is one of the largest and most successful companies in the world and an industry leader in the paper and pulp market, so their support will be instrumental in enabling us to continue delivering innovative solutions to our customers.
“We see moulded fibre as the leading alternative to single-use plastic in a broad range of applications, both to replicate required performance objectives and achieve the potential to be recycled at scale.
“Our partnership with ITOCHU will allow us to progress from strength to strength as we look to accelerate the pace of sustainable innovation we can provide the market.”
Jin Asada, group director of ITOCHU Europe Plc, said: “ITOCHU is pleased to announce our strategic investment and partnership with Transcend Packaging. As one of Japan’s largest companies, we are committed to supporting the global shift towards sustainability and the realisation of a decarbonised society.
“Our investment will help Transcend Packaging expand its reach into new markets and develop one of the largest moulded fibre production facilities in Europe. Together, we aim to save billions of pieces of single-use plastic from landfills annually, while unlocking new product categories for paper and fibre-based sustainable packaging products.
“We are excited to collaborate with Transcend Packaging to drive innovation in sustainable packaging, utilising our expertise in the trading and distribution of pulp and paper products in Europe, and our strategic investment in Metsa Fibre in Finland.
“With our global business reach, we are confident that our partnership will make a significant impact in the packaging industry and contribute to a more sustainable future.”
Don’t miss
Read More:
Transcend Packaging in partnership deal with US firm Zume
Customer boost for Global Centre of Rail Excellence