Closed Loop Partners Funds LEI Packaging's New Recycled Fiber Facility
A multi-million-dollar loan supports LEI Packaging's second Minnesota production facility, expanding domestic processing capacity for post-consumer recycled paper.
MONTREAL (RecyclingMonster): Closed Loop Partners has provided a multi-million-dollar loan to Minnesota-based LEI Packaging, supporting the construction of its newly completed second molded fiber packaging facility in Chisago City.
The financing, provided through Closed Loop Partners' Catalytic Capital & Private Credit strategy, will help expand domestic recycled paper processing and production of molded fiber packaging for agricultural and other customers.
Founded in 2014 by Paul and Katie Johnson, the family-owned manufacturer produces recycled-paper egg cartons and trays for farms, agricultural cooperatives and customers across the United States.
New Facility Expands Post-Consumer Recycled Fiber Processing
The second facility features a de-trashing system designed to process post-consumer recycled fiber bales, allowing LEI Packaging to diversify beyond the post-industrial material used at its first facility.
According to Closed Loop Partners, the expansion is expected to use thousands of tons of post-consumer recycled fiber as feedstock, creating additional domestic demand for recovered paper.
The investment comes as food and consumer goods companies increasingly consider fiber-based packaging alternatives to foam and other conventional materials.
LEI Packaging Expansion Expected to Create Over 20 Jobs
The project is expected to generate more than 20 jobs, alongside approximately 15 construction and development positions associated with the facility.
LEI Packaging co-founder Paul Johnson said the additional capacity will help the company incorporate more recovered fiber into its products while responding to customer demand.
Closed Loop Partners said the investment supports its broader strategy of financing recycling infrastructure, expanding domestic remanufacturing capacity and strengthening end markets for recovered materials.
Source: Closed Loop Partners, November 11, 2026.
RecyclingMonster Industry Edge
A New Buyer for Recovered Paper: LEI Packaging's expansion adds a potential domestic outlet for post-consumer recycled fiber, helping connect material recovery operations with packaging manufacturers. The key commercial opportunity lies in supplying consistent, usable fiber at competitive costs. Actual throughput, contamination control and sustained customer demand will determine the facility's contribution to recovered-paper markets.
Related market perspective: ScrapMonster: U.S. Packaging Paper Shipments Rise 2% as Printing Paper Falls 9%
Frequently Asked Questions
Who financed LEI Packaging's expansion?
Closed Loop Partners provided a multi-million-dollar loan through its Catalytic Capital & Private Credit strategy.
Where is the new LEI Packaging facility?
The second production facility is in Chisago City, Minnesota.
What materials will the new facility process?
The facility is designed to process post-consumer recycled paper fiber bales.
What products does LEI Packaging manufacture?
The company manufactures molded fiber packaging, including egg cartons and trays made from recycled paper.
How many jobs will the expansion create?
The project is expected to generate more than 20 jobs and approximately 15 construction and development positions.