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Transcend Packaging, the Ystrad Mynach firm best known for producing paper straws for global chains such as McDonald’s and Starbucks, has gone into partnership with a major Japanese company.

Transcend has reached an agreement with the Tokyo-based paper producer ITOCHU Corporation.

As part of the partnership, the companies will develop a range of paper and fibre-based packaging products.

The deal sees ITOCHU, which has an annual trading revenue of 100 billion US Dollars, invest $10million to create new products as Transcend looks to reach into new markets in North America and Asia.

It is hoped the partnership will see Transcend become a major innovator of moulded fibre, which is a more environmentally-friendly alternative to plastic.

Transcend chief executive Lorenzo Angelucci said: “ITOCHU is one of the largest and most successful companies in the world and an industry leader in the paper and pulp market, so their support will be instrumental in enabling us to continue delivering innovative solutions to our customers.

“We see moulded fibre as the leading alternative to single-use plastic.”

Mr Angelucci added: “Our partnership with ITOCHU will allow us to progress from strength-to-strength as we look to accelerate the pace of sustainable innovation we can provide the market.”

Jin Asada, of ITOCHU Europe, said his company was “committed to supporting the global shift towards sustainability and the realisation of a decarbonised society”.

Mr Asada continued: “Our investment will help Transcend Packaging expand its reach into new markets and develop one of the largest moulded fibre production facilities in Europe.

“Together, we aim to save billions of pieces of single-use plastic from landfills annually, while unlocking new product categories for paper and fibre-based sustainable packaging products.”