Packbenefit secures €13m EIB debt financing to drive internationalisation

Packbenefit, the Circularity Capital-backed European innovator in high-performance fibre-based food packaging, has secured a €13m loan from the European Investment Bank (EIB) to expand manufacturing capacity and meet growing global demand for recyclable, compostable and sustainable food tray solutions.

In combination with equity funding received from Circularity Capital, the financing will support the ramp-up of Packbenefit’s second commercial-scale production plant in Aldeamayor de San Martin, Valladolid, Spain, which will see production output increase by an additional 180m trays per annum (ca. 4,500 metric tons).

Following eight years of research and development into forming and coating technologies, Packbenefit has developed and patented an innovative technology to convert virgin pulp, sourced from EU Forest Stewardship Council certified sources, into recyclable and compostable food trays with the same high-performance characteristics of fossil fuel based plastic packaging. Alongside being ovenproof, microwaveable and suitable for freezing, the company’s products can be recycled within standard post-consumer paper/card recycling streams and are certified as industrially compostable.

With a clear focus on circular solutions that enable resource productivity by facilitating material recapture and reducing waste, Packbenefit provides a compelling proposition for foodservice clients within commercial catering, fresh food and food-to-go end markets. The company also supplies complementary packaging products, such as lids and sustainable tray sealing film, to customers worldwide.

Philippe Fèvre, Chief Executive Officer of Packbenefit, commented: “PackBenefit’s roadmap is aligned with the EU’s principles on environmental protection, while simultaneously delivering better food safety standards for consumers and reducing resource waste. In combination with equity funding from Circularity Capital, EIB’s financial support will allow us to more efficiently address the European market’s demand for innovative and sustainable food packaging.”

Andrew Shannon, founding partner at Circularity Capital, added: “This is a very exciting time for PackBenefit. The company’s market-leading, commercially proven solution has allowed it to build a blue-chip client base whose demand vastly outstrips current manufacturing capacity. Growing adoption of PackBenefit’s solutions will help accelerate the transition towards a more circular packaging economy by displacing incumbent, single-use fossil-derived packaging solutions which more often than not end up in landfill or incineration.

“As the company looks towards its second commercial-scale production plant in Valladolid, we’re looking forward to continuing to work closely with the senior team to increase the uptake of thermoformed pulp as a truly scalable, sustainable food packaging solution, capable of the type of technical performance previously thought possible only with plastic.”

Ricardo Mourinho Félix, European Investment Bank Vice-President, concluded: “As food consumption continues to increase, the need for sustainable packaging is becoming more pressing than ever before. The EIB loan will help PackBenefit to scale-up its existing production facilities in Spain, providing recyclable and compostable food trays for customers across Europe.

“Financing companies such as PackBenefit contributes to a circular economy, ensuring that the value of products and materials is maintained for as long as possible, via recycling for further use.”

For more information about Packbenefit, or the company’s innovative range of recyclable, compostable and sustainable food tray solutions, visit www.packbenefit.eco.