Circular economy

Infinited Fiber plans 400 million EUR investment at Stora Enso Veitsiluoto mill

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Fashion and textile technology company Infinited Fiber Company plans to build a commercial-scale factory to produce regenerated textile fibres for the world’s leading garment companies at the Stora Enso’s Veitsiluoto paper mill  in Kemi, a Finnish town on the northern shore of the Baltic Sea. The size of the investment is estimated at 400 million EUR and is expected to create approximately 270 jobs in the area. The annual fibre production capacity of the factory is also expected to be 30,000 tonnes, which is equivalent to the fibre needed for approximately 100 million T-shirts.

Infinited Fiber Company’s technology enables the transformation of cotton-rich textile waste into a versatile, high-quality regenerated textile fibre called Infinna, which resembles cotton. Leading international fashion and clothing companies, including Zara’s parent company Inditex, PVH Europe, known for its Tommy Hilfiger brand, Patagonia, and H&M Group, have already committed to purchasing Infinna through multi-year agreements as they look for materials that enable the industry to move towards circularity. Infinited Fiber Company plans to export most of the production of its planned factory. This makes Kemi an ideal location as the city’s harbour serves as an efficient link to the rest of the world.

Infinited Fiber Company will convert a building housing a discontinued paper production line into an Infinna fibre factory. Both the engineering of the plant and the realisation of the project, as well as the related financing negotiations, started at the beginning of the year and are progressing well. Infinited Fiber Company has also agreed to provide energy and water services with the utility infrastructure company Nevel www.nevel.com.

Once operational, the plant is expected to provide direct employment for about 220 people and another 50 through on-site support functions such as services, maintenance, and logistics. The additional indirect impact on employment is estimated at approximately 800 jobs. The construction and installation phase are expected to create jobs of approximately 120 person-years. The factory is expected to operate at full capacity in 2025.

Finland can lead the way in textile circularity

«Circularity is at the core of our business. We aim to utilise existing resources in everything we do, which makes the historic Veitsiluoto industrial site perfect for us, » says Petri Alava, CEO and co-founder of Infinited Fiber Company. «At the same time, we will create new export products and jobs. Finland has strong know-how in bio-economy and is very supportive of circular economy innovations. We see these as the main strengths that enable Finland to become a leader in creating the new textile industry value chain based on the circular economy».

Infinited Fiber Company selected the Veitsiluoto industrial site after examining dozens of potential locations throughout Finland. Decisive factors supporting the decision included the site’s excellent existing infrastructure, the availability of fresh water, electricity and renewable energy, efficient port services and a skilled local workforce.

«We are delighted that part of the Veitsiluoto site is being utilised and we are happy about the investments and jobs that Infinited Fiber Company is set to bring there» says Seppo Parvi, Chief Financial Officer and Finland Country Manager of Stora Enso.