W-Cycle, Ltd., an Israeli clean-tech company specialising in plastic-free, compostable food packaging, has received a new capital investment from Brazilian conglomerate Melhoramentos, as the two firms deepen their collaboration in sustainable materials innovation.
The latest investment reinforces a strategic partnership initiated in November 2024, when Melhoramentos committed USD 3.4 million and secured exclusive rights to supply W-Cycle’s food-grade packaging technology across Latin America.
Over the last 18 months, Melhoramentos—whose portfolio includes publishing, renewable forestry, and real estate—has collaborated closely with W-Cycle to integrate its eucalyptus-based cellulose fibers into compostable food packaging applications. A portion of the pulp sourced from the company’s 80-million-square-metre renewable forestry operations is now being redirected from traditional paper production to support this joint initiative.
“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,” said Rafael Gibini, CEO of Melhoramentos.
W-Cycle’s flagship product, SupraPulp™, offers an alternative to plastic-laminated molded fiber packaging. Engineered to endure heat, grease, moisture, freezing temperatures as low as -40°C, and heating up to 220°C, the compostable material is targeted at the food service and ready-to-eat meal sectors.
“We are excited and feel fortunate to collaborate with Melhoramentos in moving our venture forward,” said 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.”
The SupraPulp platform incorporates fibrous sidestreams such as sugarcane bagasse and eucalyptus wood fiber, enhanced with proprietary additives that enable the material to withstand demanding conditions while remaining fully compostable.
According to Rome, “This investment not only solidifies our strategic alliance with Melhoramentos, unlocking powerful synergies, it also opens new doors to solutions that can tangibly address the rising calls for high-performance materials sourced from renewable resources that can effectively replace single-use plastic containers.”
The funding will enable W-Cycle to expand its research and development capabilities, increase production scale, and strengthen its commercial presence in the fast-growing sustainable packaging sector.
“Our collaboration with W-Cycle represents a watershed moment,” added Gibini. “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.”
With consumer and regulatory pressure intensifying across global markets, Latin American manufacturers are increasingly turning to recyclable and compostable packaging alternatives. Market research from Mordor Intelligence estimates that the global sustainable packaging market will exceed USD 400 billion by 2029.
W-Cycle Holdings Intl., Ltd. develops patented molded fiber packaging solutions that aim to eliminate plastic from the food industry. Through SupraPulp and strategic partnerships, the company collaborates with molded fiber producers to deliver compostable, private-label food packaging solutions tailored to diverse customer needs.
