The business won the ‘Low Carbon Manufacturing Challenge Fund’ in recognition of its mission to lower carbon emissions. It has replaced 1.2 billion pieces of plastic packaging with compostable alternatives since 2020.
The grant has contributed towards a new factory expansion as well as creating 34 new jobs and safeguarding 20, taking the company’s number of employees up to 189.
Already exporting to 34 countries globally, the business said the injection of new funds would help it meet growing demand for sustainable alternatives to plastic packaging.
David MacDonald, owner of Cullen Eco-Friendly Packaging, said: “Global demand for sustainable alternatives to plastic is soaring, and our Glasgow-headquartered firm is becoming a global leader in the space.
“We use moulded pulp to make compostable packaging for the world’s leading retailers, consumer electronics companies, food and drink chains, and health services. Our innovation approach is to do everything in-house from design to creating our own machines, to turning waste into new packaging and manufacturing at mass scale.
“So this grant win will help to spur our growth and put British sustainability manufacturing on the global map.”
Neil Francis, managing director for major projects at Scottish Enterprise, added: “Helping innovative Scottish companies to seize the opportunities in the battle against climate change is a real area of focus for Scottish Enterprise.
“There can be few better examples of this than Cullen, which has been in operation for over 100 years and is now using its expertise to adapt to the industries of the future.”
Cullen recently made a new strategic senior appointment to help it meet rapidly growing demand for its moulded fibre packaging.
The business had also revealed last year that it was investing £15m in a new innovation and design hub as well as an additional factory at its Glasgow site.
Richard Lochhead MSP, the Scottish minister for Small Business, Trade and Innovation, opened the new factory extension on Friday (2 June).
Cullen operates kit including TCY flexo lines, and a Bobst die-cutter and Expertfold gluers.