Modern Paper Limited secures £8.2m Series A to scale recycled tissue production

Modern Paper Limited, an Erith based manufacturer of recycled tissue products, has raised £8.2m in a Series A funding round. The transaction, allotted on March 13, 2026, and filed today, brings the post money valuation of the company to £23.2m.

Incorporated in February 2020, Modern Paper Limited operates a production facility in Erith, London, where it manufactures and converts recycled tissue products including toilet tissue, kitchen towels, and facial tissues. The company addresses the growing demand for sustainable paper goods by supplying the consumer, private label, and away from home sectors. Additionally, it provides parent reels to other manufacturers within the paper industry. While the UK entity was established in 2020, the wider organisation has roots in the global paper industry dating back to 1978.

The company has demonstrated substantial commercial traction, reporting revenues of £16.8m in its latest accounts. However, this rapid growth and the capital intensive nature of physical manufacturing have required significant expenditure, reflected in a reported net loss of £2.69m. The business currently employs 38 staff members according to its latest filings. Modern Paper previously expanded its UK footprint by acquiring Natsons Packaging Ltd in 2022, a move that increased its production capacity and integrated over three decades of market expertise into its operations.

The £8.2m Series A round values Modern Paper Limited at £23.2m post money. While specific institutional investors for this allotment have not been publicly disclosed in the latest filings, the company operates in close alignment with Eren Holding. Eren Holding has previously committed over £1bn to expand UK operations, including the development of the Shotton Mill in Wales. This broader strategic backing aims to build high capacity paper mills, setting a foundation for Modern Paper to add more converting lines in the near future. The company is currently targeting a Phase 1 total converting capacity of 70,000 tonnes per year across its existing plants.

This Series A round highlights a continued appetite for sustainable industrial manufacturing within the UK funding landscape. While software and digital platforms typically dominate venture capital headlines, physical infrastructure and circular economy businesses are securing substantial capital to meet stringent environmental targets. The UK paper manufacturing sector has seen a distinct shift toward recycled materials and domestic production resilience, driven by supply chain vulnerabilities exposed in recent years. Modern Paper Limited is positioning itself to manage the entire production process from pure cellulose to the end user roll, capturing margin and ensuring supply chain control in a highly competitive sector.