California-based Zume Technologies claims to have developed the world’s most advanced moulded fibre manufacturing system. 

It has created a “global-first” range of anti-leak and compostable food delivery products, including coffee cup lids.

A spokesperson for Transcend told Printweek that the initial investment for Transcend’s moulded fibre project “will be approximately €90m”, the equivalent of £76m.

Site assessments regarding the exact location of the new European site are currently underway.

The deal is set to involve the creation of one of the largest specialist moulded fibre production facilities in Europe, with Transcend targeting the $390bn (£330bn) plastic packaging industry, and promising an “economically viable substitute” to allow customers to move away from plastic. 

Transcend Packaging CEO Lorenzo Angelucci said that brands and businesses needed to “re-learn how they think about packaging” in order to move toward sustainable alternatives “that can be recycled at scale”.

“We’re excited to work with Zume – using world-leading technology, as they have been instrumental in helping some of the biggest global brands move beyond plastics and EPS foam products,” he said.

“Through our partnership, and by creating a state of the art production facility in Europe, we hope to continue this hard work and encourage businesses in Europe to take the next step, challenge their perceptions and showcase how viable new alternatives can be in meeting both performance and customer expectations.”

He described Zume as “the perfect fit”.

Transcend’s plans involve the new facility being fully functional by the middle of next year. 

The firm will initially come to market with moulded fibre ‘snap lids’ for hot beverage cups, with the goal of creating 500 million units of capacity by September 2023.

After that, it plans to develop a wider range of all-natural, certified, compostable products.

“Upon completion of the new production facility it will employ in excess of 300 people in an advanced manufacturing environment utilising state of the art manufacturing cells and advanced robotic technology,” the Transcend spokesperson stated. 

Zume was founded in 2015. It has partnered with ABB Robotics on its production solution, and uses biomass and natural plant fibres, together with sustainable barrier coatings from chemicals company Solenis, to make its range of moulded fibre products. 

Alex Garden, Zume chairman and CEO, said: “For global brands, maintaining the status quo with plastic use is no longer a viable strategy. The proof will lie in the hands of brands who put a plan in place and see it through.

“Zume aims to provide companies with a road beyond plastic. This partnership with Transcend aims to further expand our capacity to incite real change and replace plastic with an economically viable solution that performs like plastic without the harms of plastic. I admire the Transcend team’s passion for using science and technology to make the world a more sustainable place and look forward to the tremendous impact we will have together.”

Transcend was formed in 2017 and began production at its Ystrad Mynach site in 2018. Its products include straws for quick service retail and industrial applications. The business had sales of £10.4m in 2020, and is backed by IW Capital and the British Business Bank Future Fund. 

Under the partnership, Transcend will be the exclusive distributor of Zume’s moulded fibre lids in Europe, and Zume’s global customers will have access to the Transcend catalogue of products.