With the completion of the deal, HeiQ and MAS Holdings have entered into a five-year Offtake Agreement. Credit: MAS Holdings.

MAS Holdings, an apparel and textile manufacturer based in Sri Lanka, has secured a stake in HeiQ AeoniQ, the subsidiary of leading materials innovation company HeiQ Group, which aims to offer a sustainable alternative to polyester and nylon.

Since its launch in 2021, HeiQ AeoniQ is said to have received attention from major global players in the textile and clothing sectors. It uses a proprietary manufacturing method to create a cellulosic filament yarn from various non-valorised feedstock. This yarn is said to replicate the performance features of polyester or nylon while remaining sustainable and endlessly circular.

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MAS Holdings’ investment aligns with its strategy to generate 50% of its revenue through sustainable products by 2025. With a turnover of approximately $2bn, MAS Holdings’ partnership will focus on the production of the climate-positive cellulosic yarn.

HeiQ and MAS have entered into a five-year Offtake Agreement once the deal is closed. Under this agreement, MAS Holdings will purchase 3,000 tonnes of HeiQ AeoniQ yarn in 2025 and 5,000 tonnes per year from 2026 to 2029. The total value of this agreement, estimated by HeiQ, amounts to $100m.

MAS Holdings group chief executive officer Suren Fernando said: “We believe that this investment is an important step in our efforts to reshape our industry by driving innovation, collaboration, and scale. With HeiQ AeoniQ as a key catalyst, we are poised to pave the way for a more sustainable future.”

MAS Holdings will finalise its commitment upon reaching milestone one and establishing a mutual plan for commercialisation. The partnership emphasises the belief that rapid scaling is crucial to driving the adoption of sustainable, circular technologies like HeiQ AeoniQ.

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The HeiQ AeoniQ pilot plant, located in Austria, has been producing this continuous cellulosic filament yarn since Q3 2022, with a planned capacity increase from 100 tonnes to 300 tonnes by the end of 2023.

The production scale-up is expected to receive a significant boost in early 2026 with the construction of a new gigafactory. This facility, requiring an estimated investment of $250m, will have a yearly output capacity of 30,000 tonnes.

HeiQ Group CEO Carlo Centonze stated: “MAS’ investment and offtake agreement serves as resounding proof that leading textiles value chain players recognise HeiQ AeoniQ as the ultimate game-changer, placing their trust in its transformative power, and is a natural result of the confidence built over a decade that HeiQ and MAS have been doing business together.”

In June MAS Holdings partnered with solution provider Vizoo to set up a high-tech digital material service hub which can be used by fashion brands as well as vendors who require digitisation closer to the source.