Coats takes strategic investment in digital start-up

FTSE 250-listed thread manufacturer Coats Group has bought a stake in a start-up company developing a "digital thread dyeing" technology.

Coats has agreed to invest $5m for a 9.5% share in Israel-based Twine Solutions and will get a seat on the board.

Twine Solutions has created a digital on-demand thread dyeing system, which uses digital printing processes to continuously dye a single raw off-the-shelf white thread to any colour, shade and gradient, and to any requested length.

Twine says its Digital Selective Treatment technology, which operates according to highest industry standards using a unique, waterless, eco-friendly process, eliminates the need for companies to maintain coloured thread stock, dramatically reducing logistics costs, eliminating dead stock and other waste costs.

Another technology, True Color Capture, is a dye colour-matching process to allow customers to capture the colour of an object using a mobile device.

Coats chief executive Rajiv Sharma said: 'This is an exciting and innovative strategic move. We are investing in future technology which will improve our industry and its sustainability by directly addressing the key needs of our customers: speed, innovation and sustainability.

"The disruptive technology has the potential to revolutionise the thread industry and Coats will work closely with Twine to commercialise this opportunity."