National Wealth Fund makes first investment in Scotland
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 Rachel Reeves 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 Ian Murray 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 Kate Forbes 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.”