Xeros Technology Group receives first sales for XDrum™ technology design
(AIM: XSG ) said its Indian licence partner, Ramsons Garment Finishing Equipment ('Ramsons'), has received an order for 9 denim finishing machines using Xeros' technologies, representing the first sales of Xeros' innovative XDrum™ design.
London-listed Xeros is a developer and licensor of several platform technologies which transform the sustainability and economics of clothing and fabrics during their lifetime.
Manufacturing will start immediately with the first machines shipped this year to ABA Group ('ABA'), which supplies garments to globally recognised brands including H&M and Zara.
ABA who “operate to the highest environmental standards”, are one of the largest apparel manufacturers in Bangladesh supplying global leaders in the fashion industry and holds a production capacity of 45m garments per year with c.70% devoted denim products.
The order represents the first sales of Xeros' innovative XDrum™ design which fully automates the use of its proprietary XOrbs™ in garment finishing and laundry processes.
XOrbs™ in the denim finishing process eliminates the need for pumice stone and reduces water consumption by 75%. Manufacturing productivity and economics are also improved by allowing finishing processes to be undertaken in a single machine in shorter cycle times.
XDrum-enabled machines are up to 5,000 litres in cubic capacity and can process around 300 pairs of jeans per cycle. In line with its expectations, Xeros will receive a mid to high single digit royalty for machine sales and royalties for the ongoing use of XOrbs™.
Shares in Xeros Technology Group have more than doubled since the beginning of the month to open 5.49% higher this morning at 2.375p following the announcement.
The company has described its first order in the denim finishing space as ‘an important milestone for both Xeros and Ramsons ahead of a full market launch in Q1 next year.’
Mark Nichols, CEO Xeros said, "The order from the ABA Group marks the first sale of Xeros' new XDrum machine design and represents a landmark in the execution of our strategy.”
He added, “More than one billion pairs of jeans are sold every year, with each one exacting an environmental toll including high water consumption during manufacture and when washed by consumers. Microfibres from their laundering are also entering our rivers and oceans.
Our mission is to change this dramatically for the better for all the garments in our world. Today's announcement with Ramsons and ABA Group is an important step towards doing so."
“We expect our partnership with Xeros to generate further orders in South Asia which is one of the world's largest centres of garment production,” added Sunder Belani, CEO of Ramsons.
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