Zotefoams pauses ReZorce development, confirms strong full-year performance
Materials specialist () issued an update on its ReZorce circular packaging technology alongside a positive market update, confirming full-year trading in line with market expectations.
Zotefoams's proprietary material ReZorce had promised to revolutionise packaging with its "clear circularity and sustainability benefits". said the fully recyclable mono-material barrier solution had attracted significant interest from major global food, beverage, and packaging businesses. Consequently, efforts to commercialise the technology were underway in FY24, achieving a number of key technical milestones.
These efforts culminated with the successful production of an award-winning ReZorce beverage carton, capable of being run at full industrial speed on existing production machinery, with validation currently underway.
Unfortunately, today announced that it had been unable to identify a commercial partner for the project and would be pausing further development for the time being. Given the substantial capex, market access and expertise required to achieve high-volume production of ReZorce packaging, securing a strategic partner was critical for the product's commercial success.
attributed the inability to secure a partner to a combination of uncertain pricing trends in the evolving packaging market, and the significant capex required. Having paused investment in ReZorce, will now focus on near-term opportunities within its core supercritical foams business.
Nonetheless, retains it IP portfolio for ReZorce developed over the past year, and is open to resuming development in the future should market conditions improve.
Separately, issued a positive trading update, reporting strong financial performance and confidence in delivering full-year adjusted profit comfortably in line with previously issued guidance. The exit from ReZorce should reduce 's overheads and free up resources to be redeployed into its foams businesses. said both foams businesses were performing well, with robust orderbooks and good visibility into FY25.
Ronan Cox, CEO of Zotefoams, commenting: "Given how the unique aspects of, and the opportunity from, ReZorce are significant, it is disappointing that we have not been able to find a partner able to commit to this truly disruptive technology capable of giving consumers a recyclable and circular packaging solution.
"We continue to believe in the potential for this technology, but equally need to ensure that the Group has the focus and resources available to maximise the significant potential that we see in our core businesses. As evidenced by their continued strong financial performance, our supercritical foams businesses are well-placed to leverage their market leading positions and capitalise on long-term structural growth trends. This decision will allow us to redirect the considerable financial resources that we have been dedicating to the ReZorce project to focus on the exciting opportunities we have within the core Zotefoams business, and we will be sharing our plans in this regard at a capital markets day expected early in 2025."
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