SALES of modified flax fibre produced by Crailar rose to USD 4.2m in 2014, against USD 0.6m in 2013, and adjusted EBITDA loss was reduced to USD 3.4m from USD 6m in the preceding year. The net loss was also reduced, by USD 1m to USD 14.2m, including a USD 8m impairment charge in connection with the write-down of the value of the company’s South Carolina facility. The write-down reflects the company’s new focus on European production, which involves not only fibre processing in Europe but also expanding the feedstock supply chain there through direct sourcing from farmers. The annual report states that forecast demand for Crailar fibres now exceeds plant capacity and notes that two customers are investigating dedicated facilities and have scheduled validation trials for the second quarter of 2015.
The new focus on Europe, where flax growing and processing are among the oldest textile traditions, could help the fibre to become more solidly established in a shorter time.