Ecofibre, an Australian biotechnology business, has secured a deal to supply a speciality hemp yarn to global sports brand Under Armour Inc., for use in its line of performance apparel.
The agreement was reached through Ecofibre’s speciality manufacturing subsidiary Hemp Black and would allow for the supply of a speciality yarn made with its trademarked eco6 hemp charcoal over a three-year period.
Under Armour will fund the procurement of US $ 6.74 million in specialised manufacturing equipment.
A second machine is anticipated to be purchased during the first 18 months of production once the first one is commissioned early next year.
At maximum output, each machine is anticipated to generate about US $ 9 million in annual revenue. According to Ecofibre CEO Eric Wang, the supply agreement fits with the company’s Tier 1 goals.
“When we announced our strategic review earlier this year, we advised that one of the key opportunities for Hemp Black would be to secure new performance yarn clients,” he said.
Eco6 is a lightweight, low-density product made from hemp that is cultivated and harvested on accredited US farms. The stem (or hurd) of the hemp plant is carbonised at extremely high temperatures using a proprietary technique. A high-performance organic activated carbon yarn that can be used in both high-performance textile and fashion products is the result.
