In Sweden, biomaterials startup Papershell AB has announced that it has signed a EUR 40.3 million grant agreement with the EU Innovation Fund toward the company's planned expansion of its production facility in Tibro.
Stronger than plastics, versatile like fibre composites and lighter than metals, PaperShell’s patented material transforms kraft paper into fossil carbon-free load-bearing components, helping European manufacturers replace greenhouse-gas (GHG) intensive materials in new or existing products.
The proprietary process creates fibre-hardened kraft paper-based components produced in various shapes, patterns, and designs to meet both aesthetic and technical preferences.
Industrial-scale expansion
PaperShell’s existing production facility in Tibro will be expanded by 12,300 m² to a total of 15,600 m², to host automated, modular composite production lines for components used in construction, transport, consumer goods, furniture, electronics and defence, with a designed annual capacity of around 23,000 tonnes by 2030.
The expanded plant in Tibro, Sweden, planned with a wooden structure, a PaperShell façade and largely powered by solar energy, marks an early step in Europe’s transition to large-scale production of fossil-free, biogenic composites.
In December 2025, PaperShell successfully raised SEK 150 million (≈ EUR 15 million) in a fully oversubscribed funding round.
The round attracted existing shareholders, and both institutional and private investors, including DNB Asset Management (NO), Kistefos (NO), Course Corrected (SE), Carrick Family Office (SE).
