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Ecofibre signs second deal to supply Neolast specialty yarn for Under Armour apparel

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By Imelda Cotton - 
Ecofibre ASX EOF Under Armour yarn deal
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Ecofibre (ASX: EOF) has secured its second deal with global sportswear brand Under Armour to supply Neolast yarns to nominated knitting mills for the manufacture of new performance apparel.

Under the terms of the three-year agreement, Ecofibre will purchase US$4.3 million of manufacturing equipment, financed by Under Armour over 36 months at a 12% per annum interest rate with the loan repayment specifics dependent upon production volumes and the collection of sales revenue.

Ecofibre expects an annual revenue at full production of approximately US$6m.

Supply agreement

The new deal builds on a three-year supply agreement secured in July 2023 between the two companies.

Under that deal, Ecofibre’s specialty manufacturing division Hemp Black – now known as Ecofibre Advanced Technologies – is supplying specialty yarn for use in the production of new apparel.

Under Armour has since sourced new manufacturing equipment for installation and commissioning at Ecofibre’s factory to produce the yarn for knitting trials.

Performance fabrics

Neolast fibre is an alternative to elastane (or spandex) and is used to create power-stretch, elite performance fabrics.

The fibres are made using elastoester polymers developed by specialty materials producer Celanese and are designed to help address the sustainability challenges of elastane, including recycling blended fabrics.

They are produced using a solvent-free process.

Developing partnership

Ecofibre chief executive officer Uli Tombuelt welcomed the latest deal.

“I am incredibly pleased that our partnership with Under Armour and Celanese continues to develop and has seen us deliver this important milestone with supply agreements for Neolast yarn,” he said.

“We believe the performance and sustainability of this product is set to revolutionise the market for elastomeric yarn and it is a key priority that we develop further growth opportunities for this product.”

Mr Tombuelt said initial commercial sales of Neolast commenced in the last quarter of 2024 and production volumes have been increasing during the first part of the new financial year.