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Image Credit: Pulpex
In a landmark move, Labour’s newly established National Wealth Fund (NWF) has taken its first step into Scotland, teaming up with the Scottish National Investment Bank to co-finance a £62 million investment to revolutionise the packaging industry. Their mission? Scaling up the production of biodegradable bottles—a potential game-changer in the fight against plastic waste.
The funding will empower Cambridge-based Pulpex to establish its first commercial-scale manufacturing facility near Glasgow, accelerating its mission to replace single-use plastic bottles with a sustainable, fiber-based alternative. Unlike conventional plastic, Pulpex’s bottles—crafted from wood pulp—can be recycled like paper or cardboard, seamlessly integrating into existing household waste streams.
This strategic investment breaks down as follows:
£43.5 million in direct equity from the NWF
£10 million from the state-owned Scottish National Investment Bank
The remainder contributed by existing investors
With an initial 35 jobs to be created, this facility represents more than just a financial injection—it’s a pivotal moment in reshaping the UK’s packaging industry.
As the successor to the UK Infrastructure Bank, the National Wealth Fund operates under a broader mandate designed to fuel industrial transformation in areas where private finance falls short. With at least £5.8 billion earmarked for key sectors—including green hydrogen, carbon capture, ports, gigafactories, and green steel—it’s clear that Pulpex’s innovation aligns perfectly with the fund’s commitment to a sustainable future.
Chancellor Rachel Reeves said that the NWF has fuelled 8,600 jobs in the last six months and unlocked £1.6 billion of private investment. “This latest NWF investment is welcome news, creating jobs, sustainable growth and opportunity in Scotland,” she said.
Scottish Secretary Ian Murray said: “I’m delighted to see this first investment in Scotland from the new National Wealth Fund.”
“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.”
Pulpex chief executive Scott Winston said: “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.”
The support for Pulpex is another notable joint Westminster-Holyrood project, drawing on the resources of both governments to support the economy.
Scotland’s 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.
Global Partnerships & the Fight Against Plastic Waste
Pulpex isn’t starting from scratch. The company already runs an R&D and pilot production facility in Cambridge and has forged partnerships with some of the biggest names in fast-moving consumer goods (FMCG)—Diageo, PepsiCo, Unilever, and Kraft Heinz—who are actively working with Pulpex to develop custom biodegradable packaging solutions.
The impact of a shift from plastic and glass to fibre-based packaging could be massive. The UK currently consumes a staggering 38.5 million plastic bottles every single day. Worse still, 16 million of them end up in landfills, are incinerated, or pollute the environment—clogging waterways and endangering wildlife, according to Water UK.
With this latest investment, the UK is taking a definitive step toward breaking its plastic addiction. Pulpex’s expansion is not just about business—it’s about pioneering a cleaner, more sustainable future.
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