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BSF Enterprise PLC on Thursday said it intends to separate its cultivated leather business into a subsidiary company, Lab-Grown Leather Ltd. The London-based biotechnology investor said ‘the production of cultivated leather is a different process from that of cultivated meat and the markets for each product are highly distinct. Creating an independent company for BSF’s cultivated leather offering will be essential in ensuring opportunities are maximised.’ It expects to complete setting up its new subsidiary by the second half of 2024. The new company will aid BSF in scaling up technical development and operational sales of its animal skin products, it explained. According to BSF, the leather goods market is currently valued at $253 billion in 2023 and is forecast to grow to $405 billion by 2030. The firm added that it is currently in the process of hiring a chief executive officer, as well as a management team for Lab-Grown Leather, alongside partners to finance the new business. Managing Director Che Connon said: ‘Today’s announcement aims to provide an update on the strategic direction and development of the BSF Enterprise portfolio for investors. In recent months, the Company has been focused on developing a suite of subsidiary companies and growing specific teams of industry experts and management professionals to lead these companies.’ ‘This is important, given the intricacies of each target market, and will allow each subsidiary to execute its own business model, accelerate the technical progress of its own products and develop its own commercial partnerships. We look forward to providing investors with updates on the technical, operational and commercial progress of each company throughout the year.’ Shares in BSF Enterprise fell 1.8% to 10.31 pence each in London on Thursday afternoon. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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