HUGO BOSS and LYCRA endorses HeiQ AeoniQ decarbonising yarn.
As part of its ‘CLAIM 5’ growth strategy, HUGO BOSS executed its first sustainability-linked investment for a $ 5 million shareholding in HeiQ AeoniQ LLC.
London
HUGO BOSS became a front-runner in the race to adopt HeiQ AeoniQ yarns by putting a $ 5 million equity investment in HeiQ AeoniQ LLC and additional contingent $ 4 million based on performance milestone arrangements. The LYCRA Company has also become the exclusive distributor for HeiQ AeoniQ yarn by making a significant, undisclosed investment and by committing to develop the technology for broad application in textiles.
As part of its ‘CLAIM 5’ growth strategy, HUGO BOSS – one of the leading companies in the global premium apparel market – executed its first sustainability-linked investment for a $ 5 million shareholding in HeiQ AeoniQ LLC, a fully owned subsidiary of London listed HeiQ Plc. HUGO BOSS is the first company that has joined the race to adopt HeiQ AeoniQ and to have secured its stake in HeiQ AeoniQ equity. The investment is supplemented by an additional $ 4 million arrangement, which is subject to the achievement of agreed goals. The strategic partnership will help HUGO BOSS meet its ambitious sustainability targets which include the aim for climate neutrality within its own area of responsibility by 2030, and throughout the entire value chain by 2045.
In addition, the company puts particular emphasis on establishing an end-to-end circular business model. The investment therefore perfectly fits in with HUGO BOSS’ goal to strongly increase the proportion of more sustainable materials over the coming years. Over the mid to long term, HUGO BOSS is focused on the potential to materially complement and substitute the currently used polyester and nylon fibers with the cellulosic HeiQ AeoniQ fibers.
HeiQ AeoniQ – a continuous cellulosic filament yarn with the potential to compete with polyester and nylon fibers – constitutes a revolutionary, first-to-market and scalable proprietary apparel technology, which will allow the manufacturing of a sustainable, cellulosic yarn designed for circularity and closed-loop recycling that could ultimately substitute oil-based fibers.
HeiQ AeoniQ yarns are made out of cellulosic biopolymers that during growth bind carbon from the atmosphere. HeiQ AeoniQ yarn is designed to substitute existing oil-based filament yarns, such as environmentally persistent polyester and nylon, which constitute over 60% of global annual textile output of 111 M metric tons. The global polyester and nylon fiber market is worth an estimated US$135 billion USD with a CAGR of >3.5% over the next decade (Statista). For every ton of polyester & nylon substituted by HeiQ AeoniQ, potentially up to 5 tons of CO2 can be reduced.
When compared to conventional polyester, nylon, cotton and conventional regenerated cellulosic products, the production of HeiQ AeoniQ yarns has the potential to transform the environmental impact of fiber production, as it is designed to be circular, uses 100% renewable energy for manufacturing, features a closed-loop recycling of more than 99.5% of productive factors, uses no toxic chemicals, and does not draw on arable land, pesticides or fertilizers for its feedstock.
