Hugo Boss established itself as a front-runner in the race to adopt HeiQ AeoniQ yarns by making a US$5 million equity investment in HeiQ AeoniQ LLC, as well as an additional contingent US$4 million depending on performance milestone agreements. The LYCRA Company has also become the official distributor for HeiQ AeoniQ yarn after making a major, unannounced investment and committing to developing the technology for broad application in textiles.
Hugo Boss, one of the top firms in the worldwide luxury garment market, executed its first sustainability-linked investment for a US$5M stake in HeiQ AeoniQ LLC, a fully owned subsidiary of London listed HeiQ Plc, as part of its 'CLAIM 5' growth strategy.
Hugo Boss is the first firm to join the race to adopt HeiQ AeoniQ and earn a stake in HeiQ AeoniQ equity. The investment is augmented by an extra US$4M agreement, which is subject to the achievement of agreed goals.
The strategic relationship will assist Hugo Boss in meeting its ambitious sustainability goals, which include achieving climate neutrality within its own area of responsibility by 2030 and across the full value chain by 2045. Furthermore, the organization places a strong emphasis on developing an end-to-end circular business model. As a result, the investment is ideally aligned with Hugo Boss's goal of significantly increasing the share of more sustainable materials over the next few years.
Hugo Boss is focused on the potential to materially complement and substitute the currently employed polyester and nylon fibers with cellulosic HeiQ AeoniQ fibers in the medium to long term.
Daniel Grieder, CEO of Hugo Boss, said that their exciting partnership with HeiQ on HeiQ AeoniQ represents yet another significant milestone on their path to becoming the world's top premium tech-driven fashion platform. Consistent with their bold mission statement, 'We Love Fashion, We Change Fashion,' this game-changing collaboration with HeiQ allows them to further push innovation and sustainability across our brands' offerings, resulting in measurable impact for the environment and society alike.
Prior to Hugo Boss' equity investment, The LYCRA Company agreed to be the exclusive distributor for HeiQ AeoniQ yarn in exchange for a technology fee and a commitment to use its deep textiles knowledge and market channel access to prepare this new technology for widespread use in apparel applications.
Julien Born, CEO at The LYCRA Company, said that sustainability remains a major part of The LYCRA Company's strategy, as they focus on providing value-added innovations to help their clients design and enhance the excellent fabric and garment offerings while decreasing environmental impact, without losing comfort or performance. They’re collaborating closely with HeiQ to accelerate the commercialization of HeiQ's AeoniQ yarn, and are delighted about the impact this ground-breaking breakthrough will have on the apparel industry.
Carlo Centonze, co-founder & Group CEO of HeiQ, said that Hugo Boss and The LYCRA Company have made financial commitments to HeiQ AeoniQ, which are powerful endorsements of the company's game-changing potential. This also highlights their capacity to commercialize our HeiQ AeoniQ IP, which is now worth US$200 million. HeiQ AeoniQ yarn is a versatile alternative to polyester and nylon, and its climate-friendly properties create an exciting market opportunity for HeiQ, as fashion brands and retailers face increasing pressure to decarbonize their products and reduce their environmental footprints.
The funds would be used primarily to scale up and market this innovative technology. In this regard, HeiQ AeoniQ LLC plans to establish its first commercial gigafactory in Central Europe by the end of 2024 and is now building up its pilot commercialization plant for fiber production, which is set to open in Q2 2022.
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