Adidas is investing €3 million ($3.65m) in Spinnova, a Finnish brand that makes textile fiber out of agricultural waste.
Spinnova, which is planning to list on the Nasdaq Helsinki First North Growth Market, said it had developed technology to make textile fiber out of wood or waste, (such as leather, textile or food waste), without harmful chemicals. Its patented Spinnova fiber “creates zero waste, side streams or microplastics, and involves minimal CO2 emissions and water use.”
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 fiber production from leather waste. “We are an ideal match with the ambitious and pioneering Adidas sustainability strategy,” Spinnova chief executive and co-founder Janne Poranen said in a statement.
Spinnova has a continuing joint development collaboration with Adidas and through today’s commitment Adidas intends to secure access to “significant volumes” of Spinnova materials in the future, it added.
The company’s investors include funds managed by entities owned by Aktia Bank PLC, funds managed by WIP Asset Management Ltd, funds managed by DnB Fund Management, Ilmarinen Mutual Pension Insurance Company, certain funds managed by Pareto Asset Management, certain funds managed by Sp-Fund Management Company Ltd and Adidas Ventures BV. These investors have in total committed to subscribe for shares totaling €58 million ($70m) in the contemplated offering at a pre-money equity value of up to EUR275 million, conditional on the company raising gross proceeds of at least EUR100 million from the offering.
Adidas has pledged to shift to using only recycled polyester from 2024 and is also involved in research with another Finnish start-up, Infinite Fiber, to develop a process that can transform used clothes into a cotton-like material.
Photo courtesy Spinnova