Hugo Boss executed its first sustainability-linked investment for a US$5 million shareholding in HeiQ AeoniQ LLC, a fully owned subsidiary of HeiQ Plc., London/UK. The continuous cellulosic filament yarn HeiQ AeoniQ is an innovative and scalable proprietary apparel technology, which will allow the manufacturing of a sustainable, cellulosic yarn designed for circularity and closed-loop recycling that could ultimately substitute oil-based fibers. HeiQ AeoniQ yarns are made of cellulosic biopolymers that during growth bind carbon from the atmosphere. HeiQ AeoniQ yarn is designed as an alternative to existing oil-based filament yarns, such as environmentally persistent polyester and polyamide, which constitute over 60% of global annual textile output.
Hugo Boss AG, Memmingen, is the first company that has secured its stake in HeiQ AeoniQ equity. The investment is supplemented by an additional US$4 million arrangement, which is subject to the achievement of agreed goals. Hugo Boss is focused on the potential to materially complement and substitute the currently used polyester and polyamide fibers with the cellulosic HeiQ AeoniQ fibers. The strategic partnership shall help the company meeting its ambitious sustainability targets which include the aim for climate neutrality within its own area of responsibility by 2030, and throughout the entire value chain by 2045. In addition, the company puts particular emphasis on establishing an end-to-end circular business model.
Prior to Hugo Boss’ equity investment, The Lycra Company, Wilmington, DE/USA, agreed to be the exclusive distributor for HeiQ AeoniQ yarn through payment of a technology fee and a commitment to leverage its deep textiles knowledge and market channel access to prepare this new technology for broad use in apparel applications.
HeiQ AeoniQ LLC will build its first commercial factory in Central Europe by end of 2024 and is currently scaling-up its pilot commercialization plant for fiber production, scheduled for Q2/2022.