Pulpex, a sustainable packaging technology company, has secured £62 million (approximately €74M) in a Series D funding round. The investment is led by the National Wealth Fund (NWF), which committed £43.5 (approximately €52.5M) million in direct equity, alongside a £10 million (approximately €12M) co-investment from the Scottish National Investment Bank. Existing investors contributed the remaining funds.
The financing will support the development of Pulpex’s first large-scale manufacturing facility near Glasgow, marking the NWF’s first investment in Scotland since its transformation.
Pulpex has pioneered a fibre-based bottle technology made from sustainably sourced wood pulp. Unlike many other solutions, Pulpex bottles contain no hidden plastics and can be recycled through standard household waste streams. The company’s scalable technology offers a biodegradable and recyclable alternative with a lower carbon footprint compared to traditional plastic and glass packaging.
Chancellor of the Exchequer Rachel Reeves emphasized the broader economic impact, stating:
“Our Plan for Change is about going further and faster to kickstart economic growth so working people have more money in their pockets... This latest NWF investment is welcome news, creating jobs, sustainable growth and opportunity in Scotland.”
The £62M investment will fund the construction of Pulpex’s new facility near Glasgow, designed to produce up to 50 million fibre-based bottles annually. This expansion will create 35 new jobs and establish the UK’s first fibre bottle supply chain.
Deputy First Minister Kate Forbes noted: “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.”
With sustainability at its core, Pulpex’s initiative aligns with the UK’s environmental strategy. The UK generates over 38.5 million plastic bottles daily, with 16 million ending up in landfills or polluting the environment. The country’s 25-Year Environment Plan aims to eliminate avoidable plastic waste by 2050, making solutions like Pulpex a key part of the transition to sustainable packaging.
Founded in Cambridge, Pulpex currently operates from its R&D and pilot production facility. The company collaborates with major FMCG brands such as Diageo, Unilever, and Kraft Heinz, developing custom fibre-based packaging solutions.
Scott Winston of Pulpex highlighted the company’s vision: “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.”
The funding round was advised by Lazard and Damus Capital, reinforcing investor confidence in Pulpex’s potential. The Scottish National Investment Bank’s Anthony Kelly stated: “As an impact investor, focused on supporting projects that will deliver long-term economic and societal returns for Scotland, we are pleased to invest in Pulpex.”
The strategic backing from both public and private investors signals a significant step toward scaling Pulpex’s innovative packaging globally. As demand for sustainable packaging solutions rises, Pulpex aims to expand production and drive industry-wide adoption of its fibre-based bottles.
