Sustainable food packaging leader W-Cycle is strengthening its partnership with Brazilian company Melhoramentos to meet the growing demand for plastic-free, compostable food containers.
Melhoramentos, which spans various sectors such as publishing and renewable forestry, has made a new investment to support W-Cycle’s advancements.
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With the new funding, W-Cycle plans to expand its research and development (R&D) capabilities and refine its packaging solutions.
The capital injection will also help scale W-Cycle’s operations, strengthen its sales teams, and support growth strategies to widen its market presence.
Melhoramentos CEO Rafael Gibini said: “Our collaboration with W-Cycle represents a watershed moment. 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.
“Our new packaging meets the environmental and regulatory demands for providing our clients with a safe, efficient, and competitive option. Moreover, by producing locally, we ensure supply agility and contribute to strengthening the national production chain.”
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By GlobalDataThis new funding follows a $3.4m strategic alliance formed in November last year, which granted Melhoramentos rights to distribute W-Cycle’s food-grade packaging in Central America.
Over the past 18 months, the two companies have worked together to integrate cellulose fibres from Melhoramentos’ renewable forestry operations into the packaging production process.
A portion of Melhoramentos’ pulp is being repurposed for compostable food containers, a shift from traditional paper and cardboard production.
W-Cycle’s SupraPulp technology, which helps produce resilient and eco-friendly packaging, is seen as central to this collaboration.
The packaging, which can withstand varying temperatures and conditions, offers a sustainable alternative to plastic, benefiting sectors such as foodservice and delivery.
W-Cycle CEO Isaac Rome said: “We are excited and feel fortunate to collaborate with Melhoramentos in moving our venture forward.
“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 multimillion-dollar revenue.”
