REG - Zotefoams PLC - Strategic Investment in Asia

ZotefoamsAnnouncement

10/03/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250310:nRSJ9062Za&default-theme=true

RNS Number : 9062Z  Zotefoams PLC  10 March 2025

 

 

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            +44 (0) 208 664 1600
 Ronan Cox, Group CEO
 Gary McGrath, Group CFO

 IFC Advisory             +44 (0) 203 934 6630
 Graham Herring

 Tim Metcalfe

 Zach Cohen

 

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 (http://www.zotefoams.com)

AZOTE(®), ZOTEK(®), ReZorce(®) and T-FIT(®) are registered trademarks of
Zotefoams plc.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCUBVARVWUORUR