As part of the deal, ITOCHU has invested $10m and will collaborate to drive innovation in sustainable packaging, and unlock new product categories for paper and moulded fibre evolution on a global basis.
This investment launches a phase of strategic expansion for Transcend as it looks to extend its reach into new markets from Asia to North America with plans to secure additional investment to support this effort.
Both companies have sustainability in mind, aiming to help brands cut single-use plastic from landfill annually.
The partnership is also a significant milestone as ITOCHU increases its focus on the eco-friendly, wood-fibre-based material business to accelerate the development of a more sustainable society.
ITOCHU’s fibre division, ITOCHU Fibre, has considerable expertise in the trading and distribution of pulp and paper products in Europe and has a strategic investment in Metsa Fibre in Finland. The partnership is expected to enhance Transcend’s capabilities with its existing products and is a key component in the implementation of its previously announced strategy to develop one of the largest moulded fibre production facilities in Europe.
As brands look to align their packaging portfolios with emerging legislative and regulatory trends, including the Single-use Plastics Directive, Extended Producer Responsibility and revisions to the EU’s Packaging and Packaging Waste Regulation, there is an industry-wide focus on innovation in sustainable single-use packaging that can be widely recycled.
Transcend Packaging, whose client list includes McDonald’s, Starbucks, Ferrero, continues to focus on paper and fibre-based solutions combined with barrier coatings to create recyclable paper and fibre-based alternatives to plastic packaging – with key legislative changes such as Single-use Plastics Directive, Extended Producer Responsibility and revisions to the EU’s Packaging and Packaging Waste Regulation. Transcend has advocated moulded fibre as the natural alternative to plastic in multiple applications and is well positioned to meet both brand preferences and emerging legislative and regulatory requirements.
The collaboration between Transcend and ITOCHU could allow the business to become a major innovator in this category.
Lorenzo Angelucci, chief executive, Transcend Packaging, said: “Sustainable innovation and an evolving regulatory landscape are continuing to shift priorities in packaging, and we are working with a wide range of leading brands to enhance the sustainability of their packaging portfolios. ITOCHU is one of the largest and most successful companies in the world and an industry leader in the paper and pulp market, so their support will be instrumental in enabling us to continue delivering innovative solutions to our customers.
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We see moulded fibre as the leading alternative to single-use plastic in a broad range of applications, both to replicate required performance objectives and achieve the potential to be recycled at scale. Our partnership with ITOCHU will allow us to progress from strength to strength as we look to accelerate the pace of sustainable innovation we can provide the market.”
