German fashion company Hugo Boss has announced a long-term strategic partnership with sustainable yarn developer HeiQ AeoniQ, in line with its ‘Claim 5’ growth strategy.
The retailer has put in a five million dollar equity investment into HeiQ, as well as an additional contingent of four million dollars based on performance milestone arrangements, making it the first company to have secured a stake in the textile innovation firm.
It fits into Hugo Boss’ goal to strongly increase the use of sustainable materials in the coming years, with a particular focus on aiming for climate neutrality within its own area of responsibility by 2030, and throughout the entire value chain by 2045.
Additionally, the Lyrca Company has also announced it has become the exclusive distributor for HeiQ AeoniQ yarn to further boost the material’s availability throughout the industry.
HeiQ yarn, a cellulosic material, was designed with circularity and closed-loop recycling, substituting oil-based fibres, such as polyester, for a one that binds carbon from the atmosphere.
Funds raised by HeiQ will be used to scale up and commercialise the production technology, with the goal of building a giga factory in Europe by 2024 and scaling up its pilot commercialisation plant for fibre production, which is scheduled for completion by Q2 2022.