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The extraordinary buzz that the new cork thread produced by Cork-a-Tex New Generations Yarns (a joint venture between Têxteis Penedo and Sedacor) has caused in the market will allow the company to reach 1.5 million euros in sales in just their second year of production. The business model is based on creating a premium product.
“We just started a new company in cooperation with Sedacor – Cork-a-tex New Generations Yarns – that will produce cork thread. It’s a super prized product, last time was in Frankfurt. Our expectations are that consumers will welcome this product with open arms: besides the distinctive properties of cork, it incorporates other characteristics essential for hospitals (anti-mite, anti-bacteria), which will grant us access to different markets. Cork is fire-resistant, provides insulation and is suited for decoration, therefore I believe we have a fascinating product right there”, revealed the CEO of Penedo, Xavier Leite.
The company will be split 50-50 between each of the partners. In the first year it will sell around 700 thousand euro so that, “in the second year we break the 1.5 million mark. Then it’s just a matter of time until the market absorbs the product”, says Xavier Leite
The business model is somewhat, like the yarn, disruptive: “for now, the product is meant for the great luxury brands only – because they displayed the most interest, namely in Frankfurt’s trade fair. The business will be developed in a pyramid: we’ll start at the top and then make our way down, opening and broadening production”, describes Xavier Leite.