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A manufacturer leading the move away from single-use plastics has secured a £5 million investment from the Cardiff Capital Region – a partnership of ten local authorities.

The equity deal sees the Cardiff Capital Region take a 8.9% stake in the Ystrad Mynach-based company through its Innovation Investment Capital fund.

It follows a similar deal struck with Japan’s ITOCHU Corporation, with the far east pulp and paper products company investing $10m last year.

Lorenzo Angelucci, Transcend’s chief executive, said: “We are thrilled to receive this substantial investment from IIC, which underscores the confidence in our vision and strategy but also empowers us to accelerate our innovation and expand our R&D capabilities.

“With the support of IIC and our new investors, we will continue our disruptive journey in the sustainable packaging industry, furthering our commitment to environmental stewardship and economic growth in the Cardiff Capital Region.”

Transcend Packaging was launched in 2017 aiming to take advantage of other firm’s intentions to move away from single-use plastics. Its main products back then were paper straws, which it supplies to McDonalds and Starbucks, but it has since diversified into other areas, such as plastic-free drinking cups and other packaging materials.

It currently has 290 employees over three sites and it has its sights set on further global expansion thanks to the recent multimillion pound investments.

Councillor Sean Morgan, leader of Caerphilly County Borough Council, said: “We’re delighted to have such a success story on our doorstep, bringing real economic benefits and social value to Caerphilly and beyond.

“Transcend Packaging’s success is based on innovation and sustainability and the solutions they are developing here in Caerphilly will benefit the environment and communities in many countries.”

Monmouthshire County Council leader Mary Ann Brocklesby, chair of the Cardiff Capital Region, added: “Transcend is an exceptional local growth story that we are looking to help scale to even greater heights.

“Our investment, alongside other investors, will help encourage further growth and development in Ystrad Mynach and the broader Caerphilly region.”