Under Armour Signs $9 Million Deal with Hemp Black for Sustainable Yarn Supply

LOS ANGELES– Hemp Black, a subsidiary of Australia-based Ecofibre, has entered into a significant supply agreement with global sports apparel brand Under Armour Inc. The deal, valued at $9 million annually, will involve Hemp Black providing specialty yarn made from its trademarked eco6 hemp biochar to Under Armour, as reported by Business News Australia.

In addition to the agreement with Under Armour, Hemp Black has also partnered with U.S.-based Cruz Foam to manufacture sustainable and biodegradable packaging material for its customers. The three-year agreement with Cruz Foam anticipates generating annual revenue of $3 million at full production.

These recent developments come alongside the release of Ecofibre’s June quarter results, revealing a notable 46% year-on-year increase in revenue for Hemp Black, totaling $4.9 million.

Ecofibre CEO Eric Wang expressed enthusiasm for the collaboration with Cruz Foam, describing them as an innovative company with patented technologies that can drive sustainable packaging in the U.S. He emphasized Hemp Black and Cruz Foam’s shared commitment to providing sustainable product solutions to their customers and expressed support for Cruz Foam’s business expansion.

Hemp Black’s eco6 hemp biochar has gained recognition as a negative emission technology, aiming to replace petroleum-based products. The initial three-year deal with Under Armour includes the acquisition of $6.74 million worth of specialized manufacturing equipment, with the sportswear company financing the purchase, according to Small Caps. The production capacity will include two machines, with the first machine set to be commissioned in early 2024 and the second within the first 18 months of production. Each machine is projected to generate around $9 million in annual revenue at full capacity.

CEO Wang highlighted that the agreement with Under Armour aligns with Hemp Black’s aspiration to collaborate with Tier 1 clients on large-scale opportunities.

It’s worth noting that the hemp used for the eco6 line is cultivated in the United States, contributing to a localized and sustainable supply chain for the company’s products.