Scottish Secretary welcomes £43.5m boost for sustainable
packaging firm that will encourage growth, creating jobs and
prosperity.
The National Wealth Fund has made its first investment in
Scotland since its transformation to help boost growth as part of
the UK Government's Plan for Change.
The NWF is committing £43.5m in direct equity for sustainable
packaging company Pulpex, which is to build its first
commercial-scale manufacturing facility near Glasgow. A further
£10m co-investment is coming from the Scottish National
Investment Bank with an additional boost coming from existing
investors to take the total funds behind the firm to £62m.
The company has developed a unique fibre-based bottle as an
alternative to glass and plastic. The product is manufactured
from sustainably-sourced wood pulp and designed to be recycled in
the same way as paper or card in normal household recycling
streams. Its patented technology results in a recyclable and
biodegradable end-product with a lower carbon impact than current
glass or plastic packaging.
Pulpex's Glasgow plant, which will produce 50 million bottles per
year and create the UK's first fibre bottle supply chain, will
create 35 new jobs in Scotland.
Chancellor of the Exchequer said:
Our Plan for Change is about going further and faster to
kickstart economic growth so working people have more money in
their pockets. That's why we established the National
Wealth Fund which in the last six months has fuelled 8,600 jobs
and unlocked £1.6 billion of private investment in the industries
that turbocharge growth in our economy. This latest NWF
investment is welcome news, creating jobs, sustainable growth and
opportunity in Scotland.
Scottish Secretary said:
I'm delighted to see this first investment in Scotland from the
new National Wealth Fund. Boosting business is a cornerstone of
our Plan for Change and will create jobs and opportunities to
raise living standards.
Just last month, we announced that Glasgow had been chosen as one
of four areas where the UK Government will develop investment
pipelines and this new Pulpex facility, to be built on the
outskirts of the city, is a prime example of how supporting
regional growth will benefit people right across the UK. The
firm's innovative bottling solution will aid the decarbonisation
of our packaging industry and help accelerate our Net Zero goals
as we drive delivery of clean power by 2030.
Deputy First Minister said:
“This investment by the Scottish National Investment Bank will
build on Glasgow's rich history of innovation and deliver more
green jobs for the future. To drive investment into Scotland, we
have allocated £200 million to the Bank for the next financial
year. The Bank has a strong track record of success and has
generated more than £1.4 billion of private sector investment
since opening for business in 2020.”
The investment announced today will enable the construction of
Pulpex's first manufacturing facility to reach commercial-scale
capacity. The financing will help create the conditions for
growth in both Scotland and the wider alternative packaging
sector.
A move from plastic and glass to paper packaging will enable a
step change in decarbonising the packaging industry and its
efforts to increase the recycling rates of consumer goods, with
the material benefiting from the highest recycling rates and most
sophisticated infrastructure compared to other packaging
alternatives.
In the UK alone, over 38.5 million plastic bottles are used every
day, with around 16 million ending up in landfill, being burnt,
or littering the environment and waterways, according to Water
UK. The UK's 25 Year Environment Plan aims to double resource
productivity and eliminate all avoidable waste, including
plastic, by 2050. This means investments in economically viable
and ready-to-go options like Pulpex are critical interventions
for the future sustainability of the consumer goods industry.
John Flint, National Wealth Fund CEO, said:
“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.
Exciting technological advancements like Pulpex are a great
example of that potential, but they need catalytic investment to
scale and commercialise. Through financing Pulpex's new facility
in Glasgow, we will help remove barriers to future investment
from private capital and lay the foundations for further growth.”
Scott Winston, Pulpex, said:
“Thanks to the National Wealth Fund, the Scottish National
Investment Bank, our Pulpex team and to our stakeholders for
their continued support. This investment will drive the
decarbonisation of the packaging sector using leading edge
Material Bioscience to ensure this much-needed alternative to
glass and plastic will deliver its ambition. Accelerated by the
incredible business ecosystem that flourishes within Glasgow,
this will be a visible shining star demonstrating the scalability
of Pulpex technology for partners to adopt globally.”
