Papyrus Australia Advances R&D Facility and Commercial Production with Key Contracts

• Contract signed with UniSA for Rapid Prototyping and R&D facility in Adelaide
• Feasibility work progressing for Australian commercial production facility
• Prototype testing of banana fibre flat products underway
• Ongoing negotiations for Australian-Egyptian joint venture commercial structure
• Received loan funds against FY25 R&D Tax Incentive to support development

Strategic Partnership with UniSA

In a significant move for its technology development, Papyrus Australia Ltd (ASX: PPY) has formalised a contract with the University of South Australia (UniSA) to establish a Rapid Prototyping and Research & Development facility within the UniSA Future Industries Institute in Adelaide. This facility is set to become the nucleus for advancing Papyrus’s Phase 2 proprietary technology, focusing on sustainable packaging solutions that align with circular economy principles.

UniSA’s provision of workshop space, tooling, engineering design, and project management support will enable Papyrus to accelerate the scale-up of its technology and prototype development. The arrival of key processing equipment components marks a tangible step forward in this collaboration, underscoring the company’s commitment to innovation and environmental sustainability.

Progress on Commercial Production Facilities

Alongside the R&D facility, Papyrus is advancing feasibility studies for a commercial production facility in Australia. Potential sites have been identified, and negotiations with prospective offtake partners are progressing positively. This facility aims to support a robust and scalable production model for high-end, low-volume manufacturing, complementing the company’s broader commercialisation roadmap.

In parallel, Papyrus continues to develop plans for a high-volume production facility in Vietnam, reflecting its strategic approach to balancing production capacity and market reach.

Innovative Product Development

Responding to industry demand, Papyrus has been conducting prototype sample testing of flat products made from banana fibre. Early results are promising, demonstrating the material’s viability as a sustainable alternative to plastics in packaging applications. Ongoing trials aim to optimise product performance and broaden potential uses, positioning Papyrus as a pioneer in eco-friendly packaging solutions.

Navigating Joint Venture Opportunities

On the international front, Papyrus’s Australian-Egyptian joint venture committee is actively working through complex commercial structuring options. The goal is to identify an optimal framework that benefits all stakeholders, reinforcing the company’s global ambitions and collaborative approach to market expansion.

Financial and Operational Discipline

Financially, Papyrus reported related party payments consistent with company secretarial services and secured loan funds of $238,236 from Radium Capital against its FY25 Research and Development Tax Incentive. Expenditure during April primarily covered prototyping equipment procurement, staff, travel, intellectual property, and compliance costs, reflecting disciplined investment in core growth areas.

With 65% overall progress on its commercialisation roadmap projects, Papyrus Australia demonstrates steady advancement towards its strategic milestones, maintaining focus on timely delivery and shareholder value creation.

Bottom Line?

Papyrus’s UniSA partnership and production facility progress set the stage for its next growth phase in sustainable packaging innovation.

Questions in the middle?

• How will the UniSA collaboration influence Papyrus’s technology commercialisation timeline?
• What are the key terms and potential scale of the Australian-Egyptian joint venture agreement?
• When can investors expect operational outputs from the Australian and Vietnam production facilities?