Sustainable packaging company receives new round of investment
Israeli-based sustainable packaging company W-Cycle has received a new round of funding from Melhoramentos to help meet demand for plastic-free, compostable food containers.
The publicly traded Brazilian company servicing the publishing, renewable forestry and real estate industries first partnered with W-Cycle last November with a $3.4 million investment guaranteeing exclusive Latin American rights to W-Cycle’s proprietary food-grade packaging composition, according to a news release.
During the collaboration, Melhoramentos has consulted with W-cycle on effectively integrating cellulose fibers sourced from its 80 million-square-meter (86 million-square-foot) renewable forestry operations. A portion of Melhoramentos’ pulp is being redirected from traditional paper and cardboard production to production of high-performance compostable food containers.
“Having successfully merged our raw materials with W-Cycle’s truly groundbreaking solution and after a year and a half of consultations and professional support, this proven and tested innovation and collaboration makes this latest investment the logical next step forward,” Melhoramentos CEO Rafael Gibini said in the release.
W-Cycle, a clean-tech start-up, is the creator of food-grade SupraPulp formulas, which help molded fiber producers manufacture food compliant, eco-friendly trays and containers that are as robust as plastic yet require no plastic lamination and fully decompose after use.
“We are excited and feel fortunate to collaborate with Melhoramentos in moving our venture forward,” W-Cycle CEO Isaac Rome said. “Our shared mission to improve the global food packaging value chain will help build a sustainable future for all.
“The financial support from this leading company gives us significant R&D leverage and acceleration into large-scale commercial deployment with multi-million-dollar revenue.”
SupraPulp uses additives such as sugarcane waste (bagasse) or eucalyptus wood fiber to boost material resilience while maintain eco-friendliness, according to the release.
W-Cycle’s solutions are designed to hold either frozen or hot, oily foods. The company also has developed durable solutions designed to contain greasy, moist food during heating (including in air fryers), baking and freezing.
The new infusion of capital will help W-Cycle expand and upgrade its research and development department to further refine its packaging solutions and accelerate development of new products, according to the release.
“Our collaboration with W-Cycle represents a watershed moment,” Gibini said. “It is paving the way for us to channel our raw materials toward solving one of the world’s most pressing environmental challenges: the plastic waste crisis. This partnership has simultaneously opened a significant new market for us.”
