From Starch to Scale: PaperFoam's $2.2M Loan to Take On Plastic

Jan de Vries · 2026-10-30

PaperFoam, a Dutch company making biodegradable packaging from starch and natural fibres, just landed a €2 million loan (about $2.2 million) from Invest International. 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, based in The Hague, is a Dutch government-backed organization that supports Dutch-linked businesses with financing, market knowledge, and sector expertise. They've been backing PaperFoam since 2020, when the company first expanded into the Czech Republic. Jeroen Plag, Chief Investment Officer at Invest International, put it this way: "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 traditional financiers still see the company as too risky, but Invest International believes in supporting green leaders in manufacturing. "This way, we retain innovation within our own country and demonstrate that sustainability and international competitiveness go hand in hand." ### What PaperFoam actually does Founded in 1998 by Vertis Holding (a former Dutch IT company), PaperFoam is headquartered in Barneveld, Netherlands. They've been quietly building a global presence with production facilities in the Netherlands, Czech Republic, United States, and Malaysia. The company's core product is a packaging material made from starch and natural fibres—a fully-fledged alternative to conventional plastic and paper. Using patented foaming technology, they create lightweight packaging with an "exceptionally low" carbon footprint. The material is fully compostable, and the fibres can be easily recycled into paper. They also offer PaperFoam Plus, a thicker and stronger version designed to replace EPS (Expanded Polystyrene). It's drop-tested up to 11 pounds (5 kg), up to 0.2 inches (5 mm) thick, and compostable in both home and industrial composters. That's a big deal for companies looking to ditch styrofoam without sacrificing protection. PaperFoam serves customers in consumer electronics, medical devices, dry food, and cosmetics. You've probably handled their packaging without even knowing it. ### The ownership picture PaperFoam b.v. is owned by PaperFoam Holding b.v. Since March 2023, Nissha Co. Ltd., a Japanese stock-listed company, holds 30% of the holding. The remaining 70% is owned by Sustainable Pioneers Holding b.v., a Dutch entity. ### Why this matters for the packaging industry Plastic packaging is under fire everywhere. Brands are scrambling for sustainable alternatives that don't cost a fortune or compromise on protection. PaperFoam's technology offers a viable path—and this loan signals that investors see real potential. 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." ### The machinery behind the expansion The expansion is partly enabled by production machinery from Dutch suppliers Kuyer Metaal in Nijkerk and Shuffle-Mix in Barneveld. It's a nice reminder that scaling a green manufacturer also supports the local supply chain. For U.S. businesses, PaperFoam's growth means more access to compostable packaging that performs. With a plant already on American soil, the company is well-positioned to serve brands looking to meet sustainability goals without shipping packaging across oceans. As regulations tighten and consumers demand greener options, PaperFoam's starch-based solution might just become a standard. And with backing from Invest International, they're one step closer to making that happen.