Major global fiber producer Lenzing will implement blockchain tech to bring more transparency to its fiber supply chain, the firm announced on May 17.
Headquartered in Lenzing, Austria, the fiber manufacturer partnered with Hong Kong-based blockchain firm TextileGenesis to incorporate the technology in its fiber business TENCEL.
According to the press release, Lenzing expects to launch its supply chain traceability platform in 2020, while in the near future, the company will test the technology along with all the involved chain participants.
Lenzing decided to deploy distributed ledger technology (DLT) following client requests for more information about the ingredients and suppliers of its products. By applying blockchain tech, the firm intends to provide its customers with more transparency and traceability.
Lenzing is a global leader in wood-based fibers and has $2.7 billion in estimated annual revenue.
Earlier today, a senior executive at United States-based logistics firm FedEx expressed his scepticism about blockchain use in the company’s processes. Dale Chrystie claimed that traditional shipping data systems are superior to blockchain-based ones, as distributed ledger technologies are purportedly too nascent.
As Cointelegraph recently reported, luxury fashion brand Alyx will begin using the blockchain network of major crypto project Iota to track its supply chain.