Brazilian Textile Giant Vikonia Invests in Israeli Sonovia's Eco-Friendly Denim Dyeing Technology

Brazilian textile company Vikonia, one of the world's largest denim fabric suppliers, has signed a memorandum of understanding to invest 2.4 million shekels for a 20% stake in Israeli firm Sonovia. The deal values Sonovia at 12 million shekels post-investment. Sonovia developed a clean technology that dyes denim fabric using sound waves to infuse indigo color, eliminating the traditional, chemically intensive dyeing process.

The partnership aims to advance the next generation of denim production using this technology and complete its commercialization, with Vikonia funding the necessary development stages. Vikonia produces tens of millions of jeans annually for major brands such as Zara, Diesel, Calvin Klein, and American Eagle, controlling about 8% of the denim fabric market, which is valued at 20 to 30 billion dollars annually. The indigo dye market alone is worth approximately 1.5 billion dollars.

Vikonia is part of a conglomerate that includes a steel company owned by the Jewish-Brazilian Steinbruch family, with textile operations managed by Ricardo Steinbruch, a noted art collector. Sonovia, which went public on the Tel Aviv Stock Exchange in 2020 at a valuation of 130 million shekels, shifted to producing active protective masks during the COVID-19 pandemic but has since seen its market value drop to around 11 million shekels. Following the investment announcement, Sonovia's stock surged 15%.

Shuki Hershkovitz, Sonovia's chairman and founder, described Vikonia's investment as a turning point from development to commercialization and a vote of confidence from a leading global denim industry player. He expects the move to position Sonovia at the forefront of sustainable denim manufacturing innovation and attract interest from other key industry players.