Collaboration with von Holzhausen to Develop Vegan Leather
von Holzhausen is a material innovation company with a mission to make leather extinct through the development of next-generation materials made from plants and recycled materials. The group's vegan leather products replicate the essence of leather but offer superior performance and a dramatically lower carbon impact. Based in California, the company has factories in the US and Italy which utilise their alternative materials including Banbu Leather and Technik-Leather created from plants and recycled fibres, and designed to be biodegradable in a landfill. The company has earned a strong reputation for the sustainability and luxuriousness of their products and have been covered in world-renowned publications such as Forbes, FastCompany, and Vogue.
Nanollose will provide von Holzhausen with samples of treated and processed microbial cellulose in various forms for testing as potential alternatives to leather or other materials either in their initial state or after further processing by von Holzhausen. As part of the collaboration agreement, each party will work closely together liaising regularly to exchange information and key specifications to advance the collaboration.
The term of the agreement is from execution until the earliest to occur of one year, or completion of the development period. This term can be extended by the written agreement of both parties. Either party may terminate the agreement by providing no less than three months prior written notice. If the collaboration is successful in developing commercially viable project materials, Nanollose and von Holzhausen will work together in good faith to agree on a supply agreement or other relevant commercial agreement to jointly commercialise the project materials.
The vegan leather market is a large market opportunity which has seen exponential growth in recent years. Increasing awareness on the ethical and environmental concerns over the impact of traditional leather production among consumers is a key driver for individuals adopting vegan culture and products. The market is expected to continue its strong growth and be valued at US$89.6 billion by 2025.
A successful collaboration with von Holzhausen will provide Nanollose with a footprint in this large market opportunity with a proven and trusted partner.
The vegan leather project is independent of Nanollose's collaboration with Birla Cellulose as, unlike its Nullarbor(TM) technology, it does not require the production of fibre. Consequently, the project provides Nanollose with valuable technology and business diversity.
The agreement adds to Nanollose's strong network of collaborators, which has rapidly advanced following the completion of its first pilot spin of the Company's Nullarbor-20(TM) forest-friendly lyocell fibre with Birla Cellulose (refer ASX announcement: 28 February 2022). Each collaboration has been secured with a partner that fits within the Company's criteria as a market leader across key segments of the fashion and textile industries. The Company alongside fashion consultant, Carla Woidt, is progressing through a large number of inbound enquiries and is advancing discussions with additional potential partners including several leading global fashion and textile brands.
Executive Chairman, Dr Wayne Best, said: "We're delighted to be working with von Holzhausen to develop vegan leather. Microbial cellulose is not only vegan, but also natural and biodegradable, making it an ideal component for sustainable vegan materials. Nanollose's expertise in microbial cellulose combined with von Holzhausen's expertise and track record in developing and commercialising vegan leathers makes this an exciting opportunity. I look forward to providing updates to our shareholders on this and other emerging opportunities for Nanollose in the near future."
von Holzhausen CEO, Vicki von Holzhausen, said: "Our exciting partnership with Nanollose furthers our commitment to solving the urgent issue of climate change by transforming waste materials into premium ones that can be used across multiple industries. We believe that partnering with Nanollose's bacterial cellulose technology will accelerate our goal of making leather extinct."
About Nanollose Limited
Nanollose Limited (ASX:NC6) is an innovative Australian company that uses a low cost and eco-friendly fermentation process to grow fibres that could become a sustainable alternative to conventional plant-derived cellulose fibres. The Company's process, which uses streams from various large-scale industries like sugar, wine and food, has the ability to produce 'Plant-Free' Cellulose. Cellulose is the hidden building block polymer most consumers know nothing about, but forms a huge part of items used in their everyday life such as clothing, paper and hygiene products.