Zotefoams
plc
("Zotefoams", or the "Group")
Strategic Investment in
Asia
10
March 2025 - Zotefoams, a world
leader in supercritical foams, is pleased to announce its plans to
expand its international footprint through the establishment of
new, purpose-built manufacturing and innovation facilities in
Vietnam and South Korea, respectively.
Over the past nine years, the Group
has built a significant position in the athletic footwear market,
underpinned by a strong partnership with Nike, who uses Zotefoams'
supercritical fluid foams in a number of its premium shoe
programmes. This partnership has resulted in annual footwear
revenues growing to over £65m in 2024, representing the largest
market for the Group.
The longer-term potential for growth
in footwear is substantial and the Board believes that to
capitalise on this opportunity fully, the Group requires additional
dedicated manufacturing and innovation capability located close to
customers' supply chains. Being able to manufacture locally, in
addition to existing production in the UK, brings a number of clear
benefits to the Group including strengthened customer
relationships, lower production and transport costs, and
significantly improved sustainability metrics. Innovation within
the Group's own manufacturing technology will enable this
additional capacity to be delivered through a process which offers
improved flexibility when compared to existing
facilities.
Alongside the investment in
additional manufacturing capability, the Group is establishing a
small purpose-built footwear innovation centre in Busan, South
Korea. This leased facility will not only provide a platform to
showcase Zotefoams' unique technology within the region's R&D
hub but will enable a more rapid and responsive product development
capability in a fast-moving industry.
The total cost of the new
manufacturing and innovation facilities is expected to be
approximately £26 million and generate a strong return on
investment, alongside the strategic benefits. This investment is to
be made over the next three financial years and will be funded
entirely from existing facilities and within the Group's target
leverage levels. A leased facility close to Ho Chi Min City,
Vietnam, will be selected shortly and the fitting out will begin in
Q2 2025, with commissioning expected in 2027.
Evolving the Group's operational
footprint represents a key pillar in delivering its long-term
growth strategy, which includes adapting the Group's technology to
produce precision 3D parts that will reduce production waste and
improve cost efficiency and value for customers. This investment
aligns with the Group's strategic focus on getting closer to
customers, delivering more sustainable and innovative solutions,
and substantially enlarging our addressable market within the
athletic footwear sector and beyond.
The Group looks forward to providing
more detail on this at the forthcoming Capital Markets Day on 18
March 2025.
Ronan Cox, Zotefoams plc CEO said:
"This investment in Asia marks a pivotal moment for Zotefoams,
positioning us at the heart of the global athletic footwear
ecosystem. By establishing manufacturing in Vietnam and innovation
capability in South Korea, we are transforming our ability to serve
this market with greater speed and innovation. Our new 3D parts
manufacturing will significantly reduce production waste, while our
proximity to key hubs will accelerate development cycles. Our
strong partnership with Nike provides the foundation for growth
across its running portfolio and into additional footwear
categories. This expansion reflects our confidence in the
substantial growth potential of our footwear business and our
commitment to maintaining our technology leadership in order to
deliver attractive returns for our shareholders."
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No 596/2014 as it
forms part of UK Domestic Law by virtue of the European Union
(Withdrawal) Act 2018 ("UK MAR")
- Ends -
Enquiries:
|
Zotefoams plc
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+44
(0) 208 664 1600
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Ronan Cox, Group CEO
|
|
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Gary McGrath, Group CFO
|
|
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IFC
Advisory
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+44
(0) 203 934 6630
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Graham Herring
Tim Metcalfe
Zach Cohen
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About Zotefoams plc
Zotefoams plc (LSE - ZTF) is a world
leader in cellular materials technology delivering optimal material
solutions for the benefit of society. Utilising a variety of unique
manufacturing processes, including environmentally friendly
nitrogen expansion for lightweight AZOTE® polyolefin and
ZOTEK® high-performance foams, Zotefoams sells to
diverse markets worldwide. Zotefoams uses its own cellular
materials to manufacture T-FIT® advanced insulation for
demanding industrial markets. Zotefoams also owns and licenses
patented microcellular foam technology to reduce plastic use in
extrusion applications and for ReZorce® mono-material
recyclable barrier packaging.
Zotefoams is headquartered in
Croydon, UK, with additional manufacturing sites in Kentucky, USA
and Brzeg, Poland (foam manufacture), Oklahoma, USA (foam products
manufacture and conversion), Massachusetts, USA, Stilling, Denmark
(microcellular foam technology) and Jiangsu Province, China
(T-FIT).
www.zotefoams.com
AZOTE®, ZOTEK®,
ReZorce® and T-FIT® are registered trademarks
of Zotefoams plc.
