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Fibres/​Yarns/​Fabrics

Extended timeline for first Infinna fibre deliveries

Continuing impacts of the Covid-19 pandemic and the war in Ukraine are prolonging delivery times.

17th October 2022

Innovation in Textiles
 |  Finland

Clothing/​Footwear, Sustainable

Infinited Fiber Company reported in June that it planned to build a factory to produce Infinna, a textile fibre that can be created from 100% cotton-rich textile waste, at the site of a discontinued paper mill in Kemi, Finland.

The factory is expected to create around 270 jobs in the area and to have an annual production capacity of 30,000 metric tons – equivalent to the fibre needed for about 100 million T-shirts. The future factory’s customer-base includes several of the world’s leading apparel companies, with most of the future production capacity already sold out for several years.

Since June, Infinited Fiber Company has advanced the site-specific basic engineering, recruitment planning, vendor selection, and permit processes according to plan.

However, the limited component availability caused by the continuing impacts of the Covid-19 pandemic and the war in Ukraine have significantly prolonged the delivery times for some of the key equipment and machinery needed for the factory.

Electricity prices in Finland have roughly tripled and the prices of some of the key chemicals needed in the fibre regeneration process have risen by 200-300%

As a result of these developments, Infinited has re-evaluated its overall factory project timeline and the first commercial fibre deliveries from Kemi are now expected to begin in January 2026. The scope of the project remains unchanged and construction work at the site is expected to begin during 2023 as previously communicated.

In addition, the European energy crisis sparked by the war in Ukraine has caused electricity prices in Finland to roughly triple, and the prices of some of the key chemicals needed in the fibre regeneration process have risen by some 200-300% since the start of the war.

“We are not immune to the global market context in which we operate,” said Infinited’s CEO and co-founder Petri Alava. “The supply chain issues stemming from the Covid-19 pandemic are still wreaking havoc, and the ongoing war in Ukraine has dealt a heavy blow to the global utility, commodity and financial markets – and to us.

“We are satisfied with the progress at the site of our planned commercial-scale factory and the opening of the factory remains our key priority. The current, unstable market environment has highlighted the need for us to also accelerate efforts to simultaneously pursue other avenues for scaling production, with the ultimate aim of serving our customers in the best possible way in the long run.

“We don’t have a crystal ball, but according to our advisors and other experts, utility and commodity prices are forecast to normalise before 2026, when we now expect the first commercial fibre deliveries from Kemi to be shipped.

“In addition to the likely normalisation of the market, the extended timeline enables us to undertake the necessary measures to develop the profitability of the future factory. The growing demand for Infinna is encouraging and a clear indication of the fashion industry’s commitment to circularity,” Alava concluded.

www.infinitedfiber.com

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