Paper straw specialist Transcend Packaging has secured fresh funding from Growth Lending to help the business achieve its goals to expand internationally and  into products.

Over the summer Cardiff-based Transcend announced plans for a new high-volume moulded fibre production facility as part of its partnership with Californian compostable product firm Zume Technologies. 

The new £6m working capital facility gives the firm the headroom it needs to expand. 

Transcend supplies paper straws and cups to a range of major brands including McDonald’s, Starbucks and KFC. 

Transcend Packaging director Justin Bailes said the Growth Lending team had gone “above and beyond” to ensure the firm had a bespoke funding facility to meet its specific needs. 

“It’s an extremely exciting time for the business following a series of award wins, and this funding will enable us to continue assisting leading international brands as they transition their packaging portfolios away from single-use plastic by providing high-quality alternative packaging,” he said. 

Growth Lending principal Vicki Taylor commented: “Transcend is a leading innovator in the sustainable packaging space and we are pleased to be supporting the business with its mission. Our funding comes after a period of impressive growth, and we very much look forward to watching them go from strength to strength.”

In its most recent results, for calendar year 2021, Transcend Packaging posted sales up 58% at £16.5m and made an operating loss of £7.8m due to costs associated with the launch of its Industrial Straw product which required a substantial ramp-up in machinery and personnel, and also made significant investments in R&D.  

The business said that it believed operating losses had peaked in 2021 and noted that performance had improved significantly this year.