Green technology has enabled a start-up company specializing in leather-making raise £70M in one of the most significant venture deals in Europe in 2018. This is a fresh investment that was led by ETF partners working in partnership with GPE funds managed by Hermes. The investment round was designed to avail funds to put up the E-Leather manufacturing plant with the goal of ramping its global sales operations. The facility will be launched and become fully operational in early 2019 according to news reports by the company’s president.
He went on to explain that the funding marked the most significant milestone in the development of the facility. Once established, it will help the company expand its global reach, boosting its performance and providing existing customers with new requests through technology innovation and product development. The site will also enable the company to produce environmentally friendly products that will find their way into new markets, giving the green technology a broader platform for expansion.
The green technology concept took root in September 2018 when the Peterborough-based made an agreement with Nike, the sports giant company, to create the Nike Flyleather shoes, made from 50 percent recycled fibers. Nike has commended E-Leather for the innovation, noting that it is a game-changer product that is designed for use across the footwear range.
In the company’s report, it was revealed that the production process requires 90 percent less water. The carbon emission is 80 percent lower than emitted in the processing of traditional leather, and the products are lighter and more durable.
Nike has for a long time preferred the use of leather across many of its footwear styles, but production of the products accounts for the second most significant contribution to carbon emissions and water usage. The new product, Flyleather is predicted to be the next best invention that will be used to create clothing and shoes under the Nike brand according to a statement by E-Leather.Other areas in which the startup hopes to venture is seating upholstery for rail firms, bus operators, and a targeted 150 airlines.
E-Leather’s envisions itself as the number one firm in the use of scrap fabrics to turn a green profit. In collaboration with like-minded companies and funding organizations, the start-up is confident that its innovative ideas will play a role in reducing carbon emissions. Aquafil is an example of another green technology company which is using nylon scrapings from the factory floor to make ECONYL that can be used to create everything and anything ranging from swimwear to carpets. ECONYL merely is recycled nylon that has undergone a strengthening process.
E-Leather recently got into a significant legal agreement with Genomatica, a bioengineering company, to create a viable, plant-based ingredient that the companies believe will be the breakthrough in reducing the damage created on the environment through the nylon supply chain. In the agreement, the firms have agreed on the production of plant-based caprolactam, which will be the primary ingredient used during the recycling of scrap materials. For energy efficiency, they will rely on solar energy which is less costly.
By Madeline Cuff 09 Feb 2018