German sportswear firm Adidas,
planning to increase the proportion of sustainable materials in its products,
is investing in Finland’s Spinnova, a company that makes textile fibre out of
wood or agricultural waste.
According to Spinnova, Adidas
has agreed to subscribe for $3.65 million worth of shares in the company’s
planned initial public offering, bringing the total investment it has secured
to approximately $70 million.
Janne Poranen, CEO and
co-founder, Spinnova, said that, they are an ideal match with the ambitious and
pioneering Adidas sustainability strategy.
Spinnova is building its first
commercial factory in Finland with strategic partner and wood raw material
supplier Suzano, and is also building a pilot facility for fibre production out
of leather waste. The company said that Adidas wanted to secure access to
“significant volumes” of its patented fibre in future.
A $ 605 million sustainability
bond, that Adidas issued last September was five times oversubscribed, with
proceeds earmarked for investing in renewable energy production and projects to
promote recycled materials.
Adidas has pledged to shift to using only recycled polyester from
2024 and is also involved in research cooperation with another Finnish
start-up, Infinite Fiber, to develop a process that can transform used clothes
into a cotton-like material.
Source:
Reuters
Image Source: Google Images
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