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NILO Limited, an Auckland-based cleantech company pioneering the conversion of plastic waste into commercial adhesives, is delighted to announce it has secured NZ$13 million in Series A investment capital.
The round, which was led by the Inter IKEA Group and Pacific Channel, marks a significant milestone in NILO's mission to transform plastic waste into an effective wood fibreboard adhesive.
NILO CEO Tim Williams said,
"Our adhesive is a drop-in replacement for urea formaldehyde, a common industrial binding agent used in flooring, cabinetry, and furniture production. This capital injection will enable us to strengthen the team, fine-tune our adhesive formulation, conduct additional industrial trials, and produce larger quantities for potential international clients to use in their own tests."
Williams added, "For manufacturing plant owners, switching to NILO's adhesive involves minimal cost but offers significant environmental benefits. Unlike urea formaldehyde, which has a significantly high carbon footprint and releases harmful off-gases at room temperature, our binder contains no formaldehyde and utilises typically non-recycled materials such as plastic film and post-industrial waste. This approach not only reduces plastic pollution but also addresses the health and environmental concerns associated with traditional adhesives."
Highlighting the cost-effectiveness of NILO's solution, Williams noted, "The cost of building our modular adhesive plants is a fraction of the cost of other strategies to economically use plastic waste streams such as waste-to-energy, making our technology the most economically attractive solution for tackling plastic waste globally."
"We're thrilled to be supporting NILO's innovative approach to sustainable adhesives," said Marny Reakes, Pacific Channel Venture Partner. "Their technology, which addresses two global challenges, presents a scalable business model with significant growth potential.
"With the global wood adhesives market exceeding US$16.2b and facing increasing regulatory pressure to move away from formaldehyde-based products, NILO's environmentally conscious solution is well-positioned to capitalise on this transition, potentially establishing new industry standards in sustainable materials."
With this funding, NILO is poised to accelerate its growth, expand its team, and further develop its groundbreaking technology to meet the increasing global demand for sustainable industrial solutions.
