NZ Cleantech Company NILO Hits Major Milestone In Low-Carbon Adhesive Made From Plastic Waste

NILO’s plastic-waste-based adhesive is designed for hybrid use in engineered wood products, with a vision for a fully low-carbon, formaldehyde-free future.

Auckland, NZ – 11 July 2025 Cleantech company NILO has reached a significant technical milestone on its journey toward commercialisation. NILO has developed a sprayable adhesive made from plastic waste that significantly reduces the emission of formaldehyde and the carbon footprint of engineered wood products. Rigorous internal validation testing over the last month has confirmed NILO’s formulation meets key performance standards for furniture-grade products, which make up approximately 60% of the global particle board market.

NILO’s adhesive is derived from hard-to-recycle plastic waste streams, specifically polyethylene (PE) and polypropylene (PP), that would otherwise be incinerated or end up in landfill. These plastics are commonly used in products like agricultural and industrial shrink-wrap. Using a patented process, NILO transforms the plastic waste into an industrial adhesive that is clean, safe and cost-competitive.

Developed by NILO’s Auckland-based team, led by Chief Technical Officer Simon Oakley, the adhesive can be used with a wide range of fibre sources to produce engineered wood products in a heated press. In keeping with NILO’s circular model, products made using its adhesive can be reground and reused as feedstock for new board production.

Using NILO adhesive helps global manufacturers move away from hazardous traditional adhesives, particularly urea formaldehyde (UF), melamine urea formaldehyde (MUF) and methylene diphenyl diisocyanate (MDI), while lowering the overall carbon footprint of the final product. NILO adhesive can be blended with existing adhesive formulations, increasing the speed to market and enabling a strong customer adoption pathway.

“Our aim is to ultimately replace UF, MUF and MDI adhesives entirely,” says NILO CEO Michael Maunsell. “But 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.”

Adhesives are one of the most emissions-intensive components in the manufacture of engineered wood products, which are used globally 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. Independent third-party testing will take place in the coming months, with full-scale production trials at international facilities scheduled for 2026.

Backed by global investors – IKEA invested in NILO in May 2023 and has a seat on the board – NILO is one of a small number of companies globally working to decarbonise the adhesives that hold engineered wood products together.

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