NILO, the IKEA-backed start-up aiming to produce industrial adhesive from plastic waste, is one step closer to commercialisation after internal validation tests this month confirmed that its formula meets all performance standards for furniture-grade products, which accounts for 60% of the global particleboard market.
Developed by NILO’s Auckland-based team, led by Chief Technical Officer Simon Oakley, the adhesives can be used with a wide range of fibre sources to produce engineered wood products using a heated press. And in line with NILO’s circular model, products made using its adhesive can be reground and reused as feedstock for producing new boards.
“We aim to ultimately replace UF (urea formaldehyde), MUF (melamine urea formaldehyde) and MDI (methylene diphenyl diisocyanate) adhesives entirely,” said Michael Maunsell, NILO CEO, adding that adhesives can be blended with current formulas to accelerate their speed to market and drive the customer adoption pathway. “Right now, we’re offering a real, workable solution that integrates with existing manufacturing processes, which is critical for the sector to make meaningful progress on emissions.”
Wood Central understands that the new adhesives are derived from hard-to-recycle plastic waste streams, including polyethylene (PE) and polypropylene (PP), used in agricultural and industrial shrink wrap and would otherwise be incinerated or end up in landfills. However, using a patented process, NILO transforms the plastic waste into an industrial adhesive that is clean, safe and cost-competitive.
The US, EU, and China are all tightening regulations on formaldehyde in wood products.
As it stands, adhesives are one of the most carbon-intensive components in the manufacturing process for engineered wood products, which are used in furniture, cabinetry, interiors, and construction. Reducing the use of UF, MUF, and MDI, which are derived from fossil fuels and associated with health, safety, and emissions concerns, is a growing priority for global manufacturers under pressure to meet environmental targets: “NILO’s formulation is compatible with standard production lines and designed to be used as a drop-in component, supporting the transition to cleaner, lower-emission adhesive systems,” NILO revealed in a media release circulated to Wood Central today. “Independent third-party testing is set to take place in the coming months, ahead of full-scale production trials in 2026.”
In March, Wood Central reported that more than 480 million tonnes of plastic are produced every year, with around 80% ending up in waste streams. And of that, around half is PE and PP, with NILO, backed by the InterIKEA Group and Australasian deeptech venture capitalist Pacific Channel, tackling two problems simultaneously: the growing stockpiles of plastic waste and the global push by to eliminate formaldehyde in composite wood products.
- To learn more about the NILO, click here for Wood Central’s special feature from March 2025.
