Brazilian forestry and publishing company Melhoramentos has increased its investment in Israeli clean-tech firm W-Cycle, extending a partnership focused on the production of compostable, plastic-free food containers. The move follows an initial strategic investment of $3.4 million in November 2024, which granted Melhoramentos exclusive distribution rights for W-Cycle’s molded fiber packaging products across Latin America.
“The financial support […] gives us significant R&D leverage and acceleration into large-scale commercial deployment”
The ongoing collaboration involves the integration of cellulose fibers from Melhoramentos’ 80 million square meters of sustainably managed forests into W-Cycle’s food-grade packaging formulations. This shift repurposes a portion of Melhoramentos’ pulp output—traditionally used in paper and cardboard—toward the production of molded fiber containers designed for food contact.
W-Cycle has developed SupraPulp™, a proprietary cellulose-based material that enables the manufacturing of compostable trays and containers. These products are engineered to resist grease, moisture, and temperature extremes without requiring plastic lamination. Suitable for hot and cold food applications, the packaging is designed for use in environments such as ovens, air fryers, and freezers, with performance specifications ranging from -40°C to 220°C.
Melhoramentos CEO Rafael Gibini stated that the collaboration with W-Cycle aligns with the company’s strategy to leverage its raw materials in new applications that address environmental challenges. “Having successfully merged our raw materials with W-Cycle’s 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,” he said.
Targeting high-growth packaging segments
W-Cycle is targeting sectors including foodservice, ready-to-eat meals, and food delivery, offering both finished packaging solutions and formulations for other fiber-based packaging manufacturers.
The additional funding from Melhoramentos will be used by W-Cycle to expand its R&D operations, develop new product formulations, and scale commercial activities. The company also intends to increase its sales capacity and broaden its market presence.
W-Cycle CEO Isaac Rome added that the investment will support the transition to large-scale deployment: “The financial support from this leading company gives us significant R&D leverage and acceleration into large-scale commercial deployment with multi-million-dollar revenue.”
