PaperFoam, a Dutch manufacturer of biodegradable packaging made from starch and natural fibres, has secured a €2 million loan from Invest International. The funding will support an expansion of the company’s production facility in the Czech Republic and provide working capital for its operations in Malaysia and the United States.
Invest International, based in The Hague, is backed by the Dutch government and supports Dutch and Dutch-linked businesses with financing, international market knowledge and sector expertise. The organisation has worked with PaperFoam since 2020, when it supported the company’s initial expansion into the Czech Republic.
Jeroen Plag, chief investment officer at Invest International, described PaperFoam as a Dutch innovator that has developed from a promising technology into a company with international growth potential. He said the new investment would help the business expand at a stage when traditional lenders still consider the sector too risky.
Founded in 1998 by Vertis Holding, PaperFoam is headquartered in Barneveld and operates production facilities in the Netherlands, the Czech Republic, the United States and Malaysia. PaperFoam b.v. is owned by PaperFoam Holding b.v.; Japanese listed company Nissha Co. Ltd. has held a 30% stake in the holding company since March 2023, while the remaining 70% belongs to Dutch entity Sustainable Pioneers Holding b.v.
The company develops packaging using starch, natural raw materials and patented foaming technology. It presents the material as an alternative to conventional plastic and paper packaging, highlighting its low weight, low carbon footprint and compostability. Its fibres can also be recycled into paper.
PaperFoam Plus is a thicker and stronger product designed as an alternative to expanded polystyrene. The company says it can be drop-tested with products weighing up to 5 kilograms, reaches a thickness of up to 5 millimetres and is compostable in home and industrial composters.
PaperFoam supplies customers in consumer electronics, medical products, dry food and cosmetics. CEO Willem Derkman said the financing would allow the company to increase production capacity and serve new markets and clients more efficiently.
The expansion will be supported in part by production machinery supplied by Dutch companies Kuyer Metaal, based in Nijkerk, and Shuffle-Mix, based in Barneveld.
Sources: EU-Startups.