Nanollose Limited announced that it has extended its Cooperation Agreement with Codi International BV, part of the Codi Group ("Codi"), for a further three years. With a philosophy of "Sustainability is the only way of doing business for us", Codi Group plays a leading role in Europe for the market of high quality, sustainable wet wipes. Its clients include multinational brands, European retailers, distributors and institutional parties.

The group distributes products to over 40 countries and owns high value proprietary technical information focused on the production, marketing and distribution of consumer wipes. Nanollose initially provided Codi with a sample of its Tree-Free viscose, which was then converted into a nonwoven fabric, a precursor to wet wipes. While the outcome of this trial was very positive, the Company has since transitioned away from viscose to the more environmentally friendly lyocell fibre.

Nanollose has successfully completed this transition, and the development of its NullarborTM fibre is well advanced following the successful pilot spin of 260kg of Nullarbor-20 fibre earlier this year. It is envisaged that the second pilot fibre production will be conducted on a larger scale and allow for an offtake of a quantity of fibre specifically formulated for nonwoven trials. The wet wipes market is large and continues to grow rapidly.

It includes baby wipes, personal care wipes and household or homecare wipes, with data from Research and Markets report showing that in 2021 the market was valued at around USD 21.5 Billion and predicted to grow to USD 28.8 Billion by 2028 at a CAGR of 4.3%. In addition to the growth in the market there is consumer and regulatory pressures on manufacturers to transition away from plastic fibres such as polyester, to biodegradable ones such as lyocell.