Brazilian forestry and pulp producer Melhoramentos has expanded its partnership with Israeli food packaging innovator W-Cycle, providing fresh capital to accelerate development of plastic-free, compostable food containers utilising cellulose-based materials.

Strategic alliance deepens after successful initial phase

Following an 18-month collaboration that began with a US$3.4 million partnership in November 2024, Melhoramentos has injected additional investment into W-Cycle to further develop and scale production of the SupraPulp™ compostable packaging formula. The partnership grants Melhoramentos exclusive distribution rights for W-Cycle’s technology in Latin America.

The collaboration leverages Melhoramentos’ extensive forestry resources, with cellulose fibres from its 80 million square metre renewable forestry operations being redirected from traditional paper manufacturing toward high-performance food containers. “Having successfully merged our raw materials with W-Cycle’s truly groundbreaking solution and after a year and a half of consultations and professional support, this proven and tested innovation and collaboration, makes this latest investment the logical next step forward,” stated Rafael Gibini, CEO of Melhoramentos.

Technical capabilities of the SupraPulp formulation

W-Cycle’s SupraPulp technology enables the production of moulded fibre food packaging that does not require plastic lamination yet delivers comparable performance characteristics. The proprietary additives, when combined with fibre-based materials such as sugarcane bagasse or eucalyptus wood fibre, enhance the material’s resistance to grease, moisture, and temperature fluctuations.

The current product portfolio includes packaging solutions designed for both frozen and hot foods, with more robust formulations capable of withstanding temperatures from -40°C to 220°C without leakage or structural failure. This temperature stability makes the packaging suitable for use in air fryers, conventional ovens, and freezers – addressing a significant technical challenge that has limited widespread adoption of fibre-based packaging alternatives.

Research and development expansion planned

W-Cycle intends to use the new investment to expand its R&D department, scale operations, strengthen its sales teams, and increase market presence. The funding will specifically support further refinement of existing formulations and the development of new applications.

“This investment not only solidifies our strategic alliance with Melhoramentos, unlocking powerful synergies,” said Isaac Rome, CEO of W-Cycle. “It also opens new doors to new solutions that can tangibly address the rising calls for high-performance materials sourced from renewable resources that can effectively replace single-use plastic containers.”

Market context and commercial outlook

Industry analysis from Mordor Intelligence projects the global sustainable packaging market to exceed USD 400 billion by 2029, with Latin American manufacturers increasingly adopting recyclable and compostable materials in response to consumer demand and regulatory pressures.

Melhoramentos’ Gibini noted that the partnership addresses multiple strategic objectives: “Our collaboration with W-Cycle represents a watershed moment. It is paving the way for us to channel our raw materials toward solving one of the world’s most pressing environmental challenges: the plastic waste crisis. This partnership has simultaneously opened a significant new market for us.”

For more information, visit: www.w-cycle.com