Sales of reprieve recycled yarn, produced by US-based Unifi dipped by 22 percent in the first quarter to $138.8 million, which the company attributes to weak demand from clothing brands.
An official of the company said the recycled yarn inventory appears to be approaching pre-pandemic levels among its buyers and the company is confident that it may soon experience improved order flow.
However, he added that the company’s disciplined cost control measures enabled it to generate solid cash flows during the quarter and reduce net debt, despite the difficult environment. Moreover, he added the company was encouraged by opportunities to diversify beyond apparel.
Unifi, Inc. is a U.S.-based textile manufacturing company that is known for its innovative approach to producing sustainable products, including Repreve recycled. Repreve is a brand of recycled fibers created from post-consumer plastic bottles and other recycled materials. Unifi collects plastic bottles, processes them into small chips, and then converts these chips into high-quality, recycled polyester yarns through its proprietary technology.
Repreve recycled yarn is used in a wide range of products, including apparel, automotive upholstery, home furnishings, and more. It offers a sustainable alternative to virgin polyester, reducing the need for new raw materials and lowering the environmental impact associated with traditional manufacturing processes.
Unifi’s Repreve have gained popularity among environmentally conscious consumers and businesses seeking to reduce their ecological footprint. By recycling plastic bottles into functional and versatile yarns, Unifi contributes to the conservation of natural resources, energy savings, and the reduction of greenhouse gas emissions.