UNIFI unveils biodegradable yarn technology

GREENSBORO, N.C. - UNIFI, Inc. (NYSE: UFI), a leader in recycled and synthetic yarn innovation with annual revenues of $592.7 million, announced today the launch of its REPREVE with CiCLO technology. Trading at $4.64 per share with a market capitalization of $85 million, the company is currently rated as undervalued according to InvestingPro analysis. This new product, a collaboration with Intrinsic Advanced Materials, LLC, aims to address the environmental issue of microplastic fiber pollution.

REPREVE with CiCLO technology integrates a patented additive that allows synthetic yarns to break down naturally in environments like soil and seawater. The technology is designed to maintain the yarn’s performance, durability, and dyeability while offering a solution to the shedding of microplastic fibers from synthetic textiles.

Eddie Ingle, CEO of UNIFI, emphasized the significance of the initiative, stating that it offers a globally available solution for mills, brands, and retailers to integrate and reduce microplastic fiber pollution. While the company faces challenges with a slim gross profit margin of 4.31% and significant debt levels, as revealed by InvestingPro data, this innovation could help strengthen its market position. Cheryl Smyre, Vice President of Parkdale Advanced Materials, highlighted the collaboration’s role in addressing microfiber pollution at the source and helping brands meet sustainability commitments and regulatory demands.

According to the press release, REPREVE with CiCLO technology enables synthetic fibers to biodegrade under prolonged exposure to moisture and microorganisms, significantly reducing the time they remain in the environment. The product is currently used by sustainable brands such as Bass Pro Shops, Billabong, Champion, Oakley, and Target.

UNIFI is showcasing REPREVE with CiCLO technology at the Functional Fabric Fair in the Oregon Convention Center from today until April 16, 2025. The company’s commitment to fiber science and sustainable synthetic textiles is reflected in its efforts to transform post-industrial and post-consumer waste into sustainable products through its proprietary recycling technology.

The introduction of REPREVE with CiCLO technology represents UNIFI’s continued investment in sustainable solutions and its vision for a future where circular and sustainable solutions are the standard. Despite trading at an attractive Price/Book ratio of 0.36, InvestingPro analysis indicates the company needs to address its cash burn rate and operational efficiency to fully capitalize on these innovations. For deeper insights into UNIFI’s financial health and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro. This news is based on a press release statement from UNIFI, Inc.

In other recent news, Unifi, Inc. announced plans to streamline its operations by selling its Madison, North Carolina facility in 2025. This strategic move aims to enhance operating efficiency and strengthen the company’s balance sheet. The consolidation efforts are intended to maintain customer service and sales volume while increasing utilization rates at Unifi’s remaining facilities across North and Central America. Unifi’s CEO, Eddie Ingle, emphasized the company’s commitment to a smooth transition for employees, offering opportunities at other North Carolina locations. The closure aligns with Unifi’s strategy to better serve its growing customer base in North and Central America. Certain equipment from the Madison facility will be relocated to other manufacturing sites, ensuring market demand fulfillment remains unaffected. The financial implications of this transition are expected to be discussed during the company’s second quarter fiscal 2025 earnings conference call on February 6, 2025. Unifi continues to focus on sustainability, with the sale of the Madison property contributing to debt reduction and a more sustainable future.

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