Ecofibre, an Australian company focused on hemp-driven products and materials has entered its specialty manufacturing division, Hemp Black into a Memorandum of Understanding (MoU) with sportswear giant Under Armour.

Under the terms of the MoU, Hemp Black will be the exclusive supplier of its bio-based yarns to Under Armour for an initial 3-year period, supporting the company’s objective to integrate sustainable components into its supply chain. This collaboration has also enabled Under Armour to invest in new production technology.

Once up and running the deal is expected to generate revenues of AU$9m (US$5.86M).

To accelerate this partnership, Under Armour has pledged to allocate $4.5m towards specialised manufacturing equipment for Hemp Black. The expected annual revenue per machine at full capacity is AUD$9m, said Ecofibre.

The equipment commissioning is expected to be completed by early 2024. Moreover, Hemp Black plans to acquire a second machine within the next 12-18 months to meet the increasing demand.

CEO Eric Wang said, “When Ecofibre announced our strategic review earlier this year, we advised that one of the key opportunities for Hemp Black would be to secure new performance yarn clients.  The outstanding technical capabilities of the team enable us to work with tier-1 clients on large-scale opportunities.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

UnderArmour’s main competitors in the sports apparel retail market are adidas, which recently reported a decline in revenue, and NIKE.