Leading bio-materials company Nanollose Limited (ASX: NC6) has entered into a collaboration agreement with Orta Anadolu Ticaret Ve Sanayi İşletmesi T.A.Ş , a global leader in the development, manufacture and supply of sustainable denim.
Under the agreement, Nanollose and Orta will develop denim materials incorporating Nanollose’s Tree-Free and Forest-Friendly Nullarbor fibres consisting in whole or in part of microbial cellulose.
Nanollose will provide an initial 50kg of Nullarbor-20™ from the first pilot spin to Orta to commence the project, followed by additional samples of Nullarbor fibres from subsequent pilot spins as required.
The company is currently finalising arrangements for shipping this initial fibre sample to Orta.
The term of the agreement is from execution until the earliest to occur of one year, and completion of the development period. During the term of the agreement, each party has agreed to work exclusively with the other in the development of denim fabrics from fibres incorporating microbial cellulose. Following a successful project, both parties will work together in good faith to agree on fair terms and conditions for an ongoing commercial agreement for the supply of Nullarbor fibres to Orta for the manufacture of denim fabrics.
Orta is based in Turkey and was established in 1953 as a specialist spinning and weaving company. Since 1985, the group has operated as a sustainable denim manufacturer and boasts a total production capacity of 40 million metres of denim per year.
Orta supplies denim to luxury brands including Armani, Alexander McQueen, Stella McCartney and Isabel Marant, leading denim brands including Levi’s, Lee, Wrangler, Tommy Hilfiger, and Calvin Klein, and retail brands such as GAP, Banana Republic and Madewell.
Orta has over 1,500 employees and is a leader in the field of sustainability with the aim of creating a more robust denim ecosystem where design meets technology and ethics.
The collaboration agreement with Orta is a major milestone for the company, marking its first collaboration following the successful pilot spin of the company’s Nullarbor-20™ Forest-Friendly lyocell fibre.
Executive Chairman, Dr Wayne Best, said the lyocell fibre market is a large market opportunity expected to be valued at US$1.71 billion by 2027, with the agreement acting as a valuable reference point to initiate further discussions and achieve uptake from prospective partners.
We’re delighted to be working with Orta to develop denim fabrics incorporating Nanollose’s Forest-Friendly Nullarbor fibres,” Dr Best said.
“Orta’s commitment to sustainability through innovation aligns very well with our own. The agreement also marks a very exciting milestone for Nanollose, being the first shipment of fibre from our recent pilot spin with Birla Cellulose.
“Much of the remaining fibre will be converted to yarn and fabric to meet the specific requirements of other interested parties. The Board and management look forward to updating shareholders on these other opportunities as they begin to materialise.”
