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Nanollose has busy quarter as it pushes ahead with commercial production and exclusive supply deals with big name designers and brands

The bio-materials company has received strong interest from major international clothing brands and super users of cellulose-based fibres.

Nanollose Ltd - Nanollose has busy third quarter as it pushes ahead with commercial production and exclusive supply deals with big name designers and brands
It is targeting to scale production from kilograms to tonne quantities

Nanollose Ltd (ASX:NC6) has set the stage to scale-up the production of its tree-free lyocell fibre and push for exclusive supply deals with renowned designers and high-tier apparel brands.

This follows a busy and productive March quarter for the company's ongoing commercialisation strategy.

In a new presentation that can be viewed here, the bio-materials company said the shift to sustainable clothing had already started, with big names like Zara, H&M and Nike working towards using more sustainable materials in their products. 

Nanollose has received strong interest from major international clothing brands and super users of cellulose-based fibres.

Commercial strategy

The company filed a joint patent application with Grasim Industrial Ltd in January 2021 for its tree-free, nullarborTM high tenacity lyocell fibre and has started the pilot production phase of the fibre.

It is targeting to scale production from kilograms to tonne quantities and start to deliver 2-5 tonnes per month for continued commercialisation.

In the June quarter of 2021, Nanollose plans to start nullarbor fibre offerings to brands and super users.

It will provide samples of fibre and textiles to selected brands and fashion houses and enter discussions regarding supply agreements and licensing trademarks

The company is targeting to sign exclusive supply agreements with globally renowned designers and high-tier apparel brands in the current quarter.

It also aims to provide nufolium samples to non-woven manufacture to further progress the Codi agreement.

High-growth markets

The company has first-mover advantage in the rayon market, a high-growth brands and super users of cellulose-based fibres.

This market is forecast to grow from US$14.4 billion in 2019 to US$20.9 billion by 2024, at a CAGR of 7.8%.

The personal wipes market is also a high growth market estimated to grow to US$23 billion by 2025, at a CAGR of 5.6%.

Codi Group collaboration for consumer wipes

Nanollose has also entered into a collaboration agreement with Codi Group, Europe’s leading producer of personal wipes, to develop a viable consumer wipe product, using Nanollose’s tree-free nufoliumTM non-woven fibre.

Codi’s extensive technical and commercial understanding, along with its ability to prototype and test products, will assist Nanollose in commercialising its tree-free rayon fibre for this market sector.

Clients include multinational brands, European retailers, distributors and institutional parties, with the group distributing products to more than 40 countries.

The Codi Group owns high value proprietary technical information relating to the production, marketing and distribution of consumer wipes.

Once Nanollose’s fibre has undergone further testing for the production of wipes and has demonstrated its ability to achieve commercial viability in this market, both parties will seek to enter into a formal agreement with the specific intention to form a long-term business relationship

Strong working synergies with CelluAir

Nanollose has made a $200,000 strategic investment to acquire a 20% stake in CelluAir, an Australian company developing an advanced filtration technology (AFT) based on nanocellulose.

Developed by Queensland University of Technology, the AFT has been developed and validated over a number of years, culminating in the filing of a patent application in July 2020.

CelluAir is currently scaling the AFT using off-the-shelf commercial equipment.

The investment potentially enables Nanollose to enter the high growth personal protective equipment market, within which the face mask sector alone has reached US$11 billion in 2020, with a strong growth forecast.

Initial testing by QUT has demonstrated the AFT to be potentially more effective than traditional N95 face mask filtration technology.

The AFT and CelluAir are being incubated by Innovyz, the commercialisation specialists responsible for developing and the listing of Titomic Ltd (ASX:TTT) (FRA:T04) and Amaero International Ltd (ASX:3DA).

Strong working synergies exist between the companies, with the opportunity for Nanollose to supply microbial cellulose and expertise in nanocellulose to CelluAir, assisting in the commercialisation of the technology.

Quick facts: Nanollose Ltd

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