Welsh Government saves 70 jobs at paper straw firm

The Welsh Government has revealed it helped to save 70 jobs at paper straw maker Transcend Packaging.

The company, which makes environmentally-friendly packaging for fast food outlets, was severely impacted by the pandemic.

The Ystrad Mynach-based business has received £165,500 from the Welsh Government’s Economic Resilience Fund, which helped the business continue to operate and ultimately protect its workforce.

Throughout the pandemic the Welsh Government has made £2.5 billion available to support businesses across Wales, helping to protect in excess of 160,000 jobs that might otherwise have been lost.

Transcend Packaging CEO, Lorenzo Angelucci, said: “Like most British businesses, the coronavirus pandemic had a huge impact on our sustainable packaging business; with lockdown forcing restaurants and cafes to shut, large client orders dried up.

“The funding from the Welsh Government was pivotal in assisting Transcend through these challenging times with reduced orders and income. It also safeguarded the jobs of over 70 employees at our production facility in Ystrad Mynach, Caerphilly.”

The Welsh Government supported the company to help it start up in Wales and create around 102 new jobs after it secured a significant contract to supply paper straws to McDonald’s. Since then it has also started producing a fully-recyclable and biodegradable u-bend industrial paper straw for Ribena and other major brands.

Mr Angelucci added: “Support from the Welsh Government has helped Transcend Packaging move to the forefront of the packaging industry, making us Europe’s largest producer of paper straws.

“Everyone at Transcend appreciates the coordinated effort from the Welsh Government to not only navigate the health situation, but to support Welsh business as we collectively move forward to build a strong and resilient economy.”

At the height of the pandemic, Transcend, with Innovation and R&D support from SMART Cymru, adapted the way it works to produce a million face shields a week in response to the First Minister’s call for action to support NHS Wales.

Economy Minister, Vaughan Gething said: “Transcend Packaging is an important business in Caerphilly County Borough, providing good quality jobs in the local community. I am delighted we were able to provide the business with vital support when it needed it most.

“Coronavirus has changed everyone’s lives and placed incredibly difficult challenges on our business community. In response we have worked hard to try and protect companies, jobs and livelihoods through an unprecedented package of support. Our Economic Resilience Fund has been a key part of that and I look forward to seeing Transcend Packaging rebound post-pandemic.

“I would like to add my sincere thanks for the way it stepped up to boost our efforts to produce vital PPE last year. This helped protect many frontline workers in our health and care services at the height of the pandemic.

“The business also has sustainability at its heart and its innovation is exactly the sort of business practice we want to see as we rebuild a greener Welsh economy.”