Dutch Innovator Turns Starch into Packaging Gold

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PaperFoam secures €2M loan from Invest International to expand its Czech facility and boost working capital for U.S. and Malaysian plants. The Dutch company makes biodegradable packaging from starch and natural fibers.

PaperFoam, a Dutch company that makes biodegradable packaging from starch and natural fibers, just landed a €2 million loan from Invest International. That's about $2.2 million at current exchange rates. The money will help expand its production facility in the Czech Republic and boost working capital for its plants in Malaysia and the U.S. Invest International is a Dutch government-backed organization based in The Hague. It supports Dutch and Dutch-linked businesses with financing, market knowledge, and sector expertise. ### Why Invest International Is Betting on PaperFoam Jeroen Plag, Chief Investment Officer at Invest International, said, “PaperFoam is a great example of a Dutch innovator that has travelled a difficult path from promising technology to an internationally scalable company.” He added that Invest International's involvement dates back to 2020, when it supported PaperFoam's first expansion into the Czech Republic. “With this new investment, we're helping to enable the next phase of growth at a time when traditional financiers still view it as too risky,” Plag said. “For the Netherlands, it's crucial that we help green leaders in the manufacturing industry scale up. This way, we retain innovation within our own country and demonstrate that sustainability and international competitiveness go hand in hand.” ### From IT Company to Packaging Pioneer Founded in 1998 by Vertis Holding, a former Dutch IT company, PaperFoam is based in Barneveld, Netherlands. It produces biodegradable starch-based packaging solutions and has production facilities in the Netherlands, the Czech Republic, the United States, and Malaysia. PaperFoam b.v. is owned by PaperFoam Holding b.v. Since March 2023, Nissha Co. Ltd., a Japanese stock-listed company, has owned 30% of PaperFoam Holding b.v. The remaining 70% is owned by Sustainable Pioneers Holding b.v., a Dutch entity. ### A True Alternative to Plastic and Paper PaperFoam develops packaging from starch and natural fibers as a full alternative to conventional plastic and paper. Using its patented foaming technology and natural raw materials, the company creates lightweight packaging with an “exceptionally low” carbon footprint. The material is fully compostable, and the fibers can be easily recycled into paper. PaperFoam Plus is thicker and stronger than standard PaperFoam and is designed as a sustainable alternative to EPS (Expanded Polystyrene). It offers protective qualities (drop-tested up to 11 lbs), is up to 0.2 inches thick, and is compostable in both home and industrial composters. The company serves customers in sectors such as consumer electronics, medical, dry food, and cosmetics. ### CEO: Funding Helps Expand Capacity Willem Derkman, CEO of PaperFoam, said, “Developing an innovative and sustainable alternative to traditional packaging requires time, investment, and partners who are willing to look further ahead. Thanks to the ongoing support from Invest International, we have been able to take important steps in our international growth. This funding helps us further expand our production capacity and efficiently serve new markets and clients.” According to the company, production machinery from Dutch suppliers Kuyer Metaal in Nijkerk and Shuffle-Mix in Barneveld makes the expansion possible in part. > “PaperFoam is a great example of a Dutch innovator that has travelled a difficult path from promising technology to an internationally scalable company.” – Jeroen Plag, CIO at Invest International ### What This Means for the Packaging Industry This loan is more than just a financial boost; it's a vote of confidence in sustainable packaging. As regulations tighten and consumers demand greener options, PaperFoam's technology could become a key player in the shift away from plastic. With backing from Invest International, the company is poised to scale up and prove that sustainability and competitiveness can go hand in hand.