Lactips (Saint-Jean-Bonnefonds / France; www.lactips.com), a producer of a soluble bioplastic, has completed a EUR 13m equity increase to support the company’s development. The issue was led by French national investment bank Bpifrance (Paris; www.bpifrance.fr), which manages the government-supported “SIP” fund, and Diamond Edge Ventures (DEV), the innovation investment arm of Mitsubishi Chemical Holdings (Tokyo / Japan; www.mitsubishichem-hd.co.jp). The fresh capital will enable the French company to ramp up product development and industrial facilities for bio-sourced, biodegradable and water-soluble plastics while supporting future demand. A new plant in France’s Gier valley, set to go onstream in 2021, will increase capacity to more than 3,000 t/y. BASF Venture Capital is also supporting the project. By its own account, Lactips has raised EUR 20m in funding for its business since its founding.

The new, key round of fundraising, the company said, will accelerate the commercialisation of its plastic pellets and films production and enable it to offer a wider selection of biodegradable and recyclable bio-sourced packaging for the food and construction sectors, which would include single-use packaging. At the same time, Lactips said, it will be able to help alleviate microplastics pollution of the oceans while also enhancing France’s sustainability.

The Japanese chemicals and plastics group said it expects to support the business not only financially but also provide commercial and industrial expertise. Mitsubishi Chemical is particularly interested in leveraging the French portfolio with an eye toward accelerating the use of marine biodegradable polymers in Japan. The Asian behemoth aims to recycle 100% of new plastics by 2035 and needs renewable solutions.