Dutch Packaging Firm Just Landed $2.2M to Replace Plastic

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PaperFoam, a Dutch maker of biodegradable starch-based packaging, secured a €2 million loan from Invest International to expand production in the Czech Republic and support its plants in Malaysia and the U.S.

PaperFoam, a Dutch company that makes biodegradable packaging from starch and natural fibers, just secured 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 is a Dutch government-backed organization based in The Hague. It supports Dutch and Dutch-linked businesses by providing financial backing, foreign market knowledge, and sector expertise. ### Why Invest International Is Backing PaperFoam Jeroen Plag, Chief Investment Officer at Invest International, explained: “PaperFoam is a great example of a Dutch innovator that has travelled a difficult path from promising technology to an internationally scalable company. Our involvement dates back to 2020, when we supported the company during its first expansion into the Czech Republic.” He added: “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. 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 headquartered in Barneveld. The company produces biodegradable starch-based packaging solutions and operates production facilities in the Netherlands, Czech Republic, 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, owns 30% of PaperFoam Holding b.v. The remaining 70% is held by Sustainable Pioneers Holding b.v., a Dutch entity. ### A Fully Compostable Alternative to Plastic and Paper PaperFoam develops packaging from starch and natural fibers as a complete 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 a thicker, stronger version 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 consumer electronics, medical, dry food, and cosmetics sectors. ### What the CEO Says Willem Derkman, CEO of PaperFoam, commented: “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. ### The Bigger Picture for Sustainable Packaging This investment highlights a growing trend: governments and investors are increasingly willing to back green manufacturing innovations. For U.S. companies in packaging, electronics, or medical devices, PaperFoam’s expansion could mean more access to compostable packaging solutions that don’t compromise on protection or performance. As regulations on single-use plastics tighten worldwide, alternatives like PaperFoam are positioned to fill a critical gap. The loan from Invest International not only fuels PaperFoam’s growth but also signals confidence in Europe’s ability to scale sustainable technologies globally.