The Ystrad Mynach-based company that produces paper straws for McDonald’s and KFC has secured a £10m investment package.

Transcend Packaging is hoping the investment, from London-based private equity firm IW Capital, can help in its mission to combat single-use plastics.

The company was set up in 2018, with its founders saying they were inspired by David Attenborough’s Blue Planet.

The company employs 150 people at its plant on Dyffryn Business Park.

Gabriel Fysh, Transcend Packaging co-founder and director, said: “We’re delighted to be backed by IW Capital as we focus our efforts on becoming a global leader in sustainable packaging.

“With the current focus on sustainable packaging, shifting away from plastic and the importance of domestic supply chains in a post Covid/Brexit world, Transcend is well positioned to take advantage of this well timed investment from IW Capital, existing shareholders and our strategic partners.”

Luke Davis, CEO of IW Capital, said: “We are thrilled to have led such a significant round of investment in Transcend as it provides the disruption the packaging industry was calling out for.

“Whether it is for food service businesses, groceries or the PPE market, Transcend is excellently placed to help organisations replace the plastics that customers don’t want to buy, and governments are making illegal.”

During the Covid-19 crisis, Transcend has turned its attentions towards producing PPE.

Mr Fysh said: “Our resourcefulness and creativity in a crisis allowed us to pivot and create a world’s first plastic-free PPE product in record time.

“This is further proof that we can use natural materials to replace plastics in more ways than people assume.

“All organisations are under pressure to come back greener and cleaner and every example of this presents an opportunity – whether that’s paper coffee cup lids, take away trays, cutlery or even drinks bottles. There is no longer any excuse to continue to use petroleum plastic to pollute our planet.”

Mr Fysh added: “The Covid-19 crisis and the slow-down in global trade has also highlighted the need for UK and EU companies to end their reliance on imported packaging from China and to seek safe, certified products produced here in the UK.”