Melhoramentos invest in W-Cycle’s Compostable Packaging

Gan Shmuel, Israel – Sustainable food packaging pioneer W-Cycle, Ltd. is deepening its alliance with Melhoramentos to answer demand for plastic-free, compostable food containers through its breakthrough packaging formula. The publicly traded Brazilian company with activities spanning publishing, renewable forestry, and real estate has injected fresh investment into W-cycle, propelling its innovation journey into the realm of eco-responsible packaging development.

This move follows a USD 3.4 million strategic partnership sealed in November 2024 between the two entities to supply Melhoramentos W-Cycle’s proprietary food-grade packaging composition, with exclusive rights to serve the Latin American market. During the past 18 months of the collaboration, Melhoramentos has been consulting with W-cycle on effectively integrating cellulose fibers that are sourced from its own 80 million square meter renewable forestry operations. A portion of Melhoramentos’ pulp is being redirected from traditional use within the paper and cardboard production industry toward the production of high-performance compostable food containers, giving the natural and abundant material new purpose.

“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,” declares Rafael Gibini, CEO of Melhoramentos.

“We are excited and feel fortunate to collaborate with Melhoramentos in moving our venture forward,” says Isaac Rome, CEO of W-Cycle. “Our shared mission to improve the global food packaging value chain will help build a sustainable future for all. 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.”

Packaging from the Earth.... and back

W-Cycle, a clean-tech start-up, is breaking new ground within the molded fiber space with the creation of its innovative range of food-grade SupraPulp™ formulas. SupraPulp helps

molded fiber producers manufacture a new generation of food compliant, eco-friendly trays and containers that are as robust as plastic yet require no plastic lamination and fully decompose back to the earth after use. When combined with various types of fiber-based sidestreams, such as sugarcane waste (bagasse) or eucalyptus wood fiber, these cutting-edge additives boost material resilience, allowing for molded fiber food packaging that is eco-friendly yet meticulously engineered to withstand grease, moisture, and temperature variations.

New Solutions

W-Cycle’s proprietary portfolio of solutions is designed to hold either frozen or hot, oily foods—ideal for the food, food service, and food delivery sectors. The company also has developed more heavy-duty solutions designed to contain greasy moist food during heating (including in air fryers), baking, and freezing. Tailored for caterers and ready-to-eat meal manufacturers, these lightweight structures can withstand extreme temperatures ranging from -40° to 220°C without risk of leakage or breakage. These formulas serve food packaging manufacturers seeking to upgrade their own solutions, or fiber manufacturers seeking to join the molded fiber and compostable food container movement. The new infusion of capital W-Cycle intends to expand and upgrade its R&D department to further fine tune the capabilities of its packaging solutions and accelerate development of new formulations. The funding also will help scale W-Cycle’s operations, bolster its sales teams with top-tier professionals, support growth strategies, and widen its market presence.

Partners in Sustainability

“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,” enthuses Gibini. “Our new packaging meets the environmental and regulatory demands for providing our clients with a safe, efficient, and competitive option. Moreover, by producing locally, we ensure supply agility and contribute to strengthening the national production chain.” Mordor Intelligence points to a burgeoning global sustainable packaging market that is expected to exceed USD 400 billion in value by 2029. In Latin America, manufacturers are applying greater effort into adopting more recyclable and compostable materials, aligning with growing consumer environmental consciousness. “This investment not only solidifies our strategic alliance with Melhoramentos, unlocking powerful synergies,” adds 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.”

About W-cycle

W-cycle, Holdings Intl., Ltd. is a clean-tech company that offers eco-friendly solutions to replace plastic food packaging with its patented naturally derived, field-tested SupraPulp™ cellulose material. The company custom-designs private label compostable food packaging formulas for molded-fiber manufacturers. Committed to eliminating plastic from the food industry, W-Cycle advises businesses across the packaging and food value chain, guiding them in selecting, designing, and implementing sustainable materials, thus empowering companies to accelerate the adoption of sustainable, food-compliant packaging solutions.

About Melhoramentos

Companhia Melhoramentos de São Paulo is a publicly traded company that is active directly or through its subsidiaries in publishing, forestry cultivation and management, high- performance cellulose fiber production, and real estate development. Positioning itself as a transformative agent, Melhoramentos is committed to sustainable development in Brazil, adding value to its products, services, and ventures. Founded over 130 years ago, Melhoramentos is headquartered in São Paulo and has locations in Camanducaia (MG), Bragança Paulista (SP), and Caieiras (SP).

Source : Dairynews7x7 April 3rd 2025 Press note W-Cycle