Zotefoams plc (LON:ZTF), one of the world's leading innovators in supercritical foams, has taken the decision to expand its international operations by putting up new manufacturing and innovation facilities in Vietnam and South Korea.
Due to a long-term partnership with Nike, using Zotefoams' supercritical fluid foams in premium shoe programs, they enjoy a strong position in the athletic footwear market. Consequently, this partnership catapults annual footwear revenues above £65 million in 2024, constituting the lion's share of revenues for the firm.
To seize the growth potential in footwear, Zotefoams will open a leased manufacturing facility outside Ho Chi Minh City, Vietnam, beginning fit-out in 2025 Q2, first-room commissioning expected in 2027. Local production will strengthen customer relationships, reduce costs, and promote sustainability.
In addition, the company will be setting up a footwear innovation center in Busan, South Korea, which will serve as an exhibition platform for high-end technology, helping speed up product development. This expansion is set to cost £26 million in total for the two facilities and will be financed from existing resources over the next three years.
This expansion supports Zotefoams' strategy to deliver innovations in sustainable solutions with a view to waste reduction in the production process and increased production cost efficiencies. By enhancing its operational footprint, Zotefoams intends to strengthen its market position, broaden its addressable market from athletic footwear, and earn long-term value by advanced capabilities in manufacturing and customer engagement.