UK – Pulpex, the sustainable packaging technology company, has announced a US$78.6 million (£62 million) Series D investment round to finance the construction of its first commercial-scale manufacturing facility near Glasgow.
The funding round was led by the UK’s National Wealth Fund (NWF) and the Scottish National Investment Bank, with contributions from existing investors.
The NWF has committed US$55.3 million (£43.5 million) in direct equity investment, while the Scottish National Investment Bank has contributed an additional US$12.7 million (£10 million).
The remaining funds will be provided by Pulpex’s existing investors. This new facility, which is expected to produce up to 50 million fibre-based bottles annually, will establish the UK’s first dedicated fibre bottle supply chain and generate 35 new jobs in Scotland.
Pulpex’s CEO, Scott Winston, welcomed the funding as a crucial step in scaling up production.
“Thanks to the National Wealth Fund, the Scottish National Investment Bank, our Pulpex team, and stakeholders for their continued support. This investment will help drive decarbonization in the packaging sector using advanced material bioscience,” Winston said.
“With Glasgow’s strong business ecosystem, this facility will demonstrate the scalability of Pulpex technology for partners worldwide.”
Pulpex was founded in 2020 as a research and development collaboration between beverage giant Diageo and innovation firm Pilot Lite.
The company has developed a patented fibre-based bottle solution made from sustainably sourced wood pulp, designed to be recyclable in standard household waste streams alongside paper and cardboard.
Unlike conventional plastic or glass packaging, Pulpex bottles offer a lower carbon footprint and are biodegradable.
Backing from government and industry leaders
John Flint, CEO of the National Wealth Fund, emphasized the importance of investing in circular economy solutions.
“We need to recycle more and unlock the growth potential of the circular economy. That requires sophisticated, long-term investment, both in infrastructure and packaging innovation,” he said.
“Pulpex is an excellent example of a company that can benefit from catalytic investment to scale and commercialize its technology.”
The Scottish National Investment Bank echoed similar sentiments.
“As an impact investor focused on projects delivering long-term economic and environmental benefits, we are excited to support Pulpex. Establishing this new facility in Glasgow will provide an economic boost for the region and help advance sustainable alternatives to plastic and glass packaging,” Associate Director Anthony Kelly stated.
Growing industry interest in fibre-based packaging
Pulpex has already garnered interest from major consumer goods companies such as Unilever, Kraft Heinz, PepsiCo, and The Estée Lauder Companies.
Diageo has trialed a 90% paper-based bottle for its Johnnie Walker Black Label whisky.
Last year, PulPac and PA Consulting announced they were testing Dry Molded Fiber bottle caps through The Bottle Collective, aiming to achieve over 95% fibre-based content, including caps and closures.
Additionally, NBCo recently launched its Fast Forward 50 initiative to help brands transition from single-use plastics to fibre bottles, using bamboo and bagasse for enhanced durability and moisture resistance.
Addressing plastic waste and decarbonization goals
With approximately 38.5 million plastic bottles used daily in the UK, and 16 million ending up in landfills, incinerators, or the environment, the demand for sustainable alternatives is increasing.
While glass and aluminum packaging options exist, Pulpex aims to provide a lighter-weight, lower-carbon solution with a shorter supply chain.
“This new Pulpex facility near Glasgow exemplifies how supporting regional growth benefits communities across the UK. The company’s innovative packaging solution will contribute to decarbonizing the industry and accelerating our net-zero goals,” Scottish Secretary Ian Murray highlighted the project’s potential impact.
