BERLIN, June 15 – German sportswear firm Adidas (ADSGn.DE), will be investing in Finland’s Spinnova, a company that makes textile fiber out of wood or agricultural waste, as it seeks to increase the proportion of sustainable material ingridients it uses in its range products.
Adidas has agreed to subscribe for 3 million euros (US$3.65 million) worth of shares in the company’s planned initial public offering (IPO), bringing the investment sum it has secured to 58 million euros, Spinnova said in a statement.
Spinnova CEO and co-founder Janne Poranen said, “We are an ideal match with the ambitious and pioneering Adidas sustainability strategy,”
The company is building its maiden commercial factory in Finland with strategic ally and wood raw material supplier Suzano, and is also constructing a pilot facility for fibre production out of leather waste.
Spinnova said Adidas wanted to secure access to “significant volumes” of its patented fibre in future. Adidas issued a 500 million euro sustainability bond in September 2020 that was five times oversubscribed, with proceeds earmarked for investing in projects to promote recycled materials and renewable energy production.
Adidas has pledged to transition to using only recycled polyester from 2024 and is also involved in research cooperation with another Finnish start-up, Infinite Fiber, to develop a process that can transform used clothes into a cotton-like material.