MycoWorks Closes South Carolina Facility and Pivots to Mycelium Processing Model
- Gauri Khanna
- 2 hours ago
- 3 min read
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MycoWorks is shutting its South Carolina biomanufacturing plant and transitioning from mycelium cultivation to processing third-party mycelium with its proprietary Rei-Tan™ tanning technology
The company's latest Rei-Tanâ„¢ innovation increases mycelium tensile strength from approximately 4 MPa to 18 MPa addressing mechanical performance limitations that hindered leather substitution
The strategic shift responds to capital scarcity and high manufacturing costs, with CEO Matthew Scullin citing seven consecutive months of decline in the United States ISM Manufacturing PMI
The mycelium materials industry faces a reckoning. MycoWorks, an eight-year-old company that pioneered Fine Myceliumâ„¢ technology for leather alternatives, has announced closure of its South Carolina cultivation facility, fundamentally restructuring its business model from vertical integration to specialised processing.
From Cultivation to Tanning Technology
CEO Matthew Scullin's 16th October announcement outlined the company's pivot: MycoWorks will cease growing mycelium and instead source material from external producers whilst focusing exclusively on its Rei-Tanâ„¢ tanning technology. This decision follows years of simultaneous development of both cultivation and processing systems, an approach Scullin characterises as expensive, difficult, and necessary.
The company's Reishiâ„¢ product, produced through proprietary Fine Myceliumâ„¢ cultivation and subsequently processed with Rei-Tanâ„¢ technology, has attracted designers from luxury brands. However, mycelium-based materials, whether from MycoWorks or competing startups, have demonstrated mechanical limitations compared to animal leather. Scullin identifies specific deficiencies: lower tear strength, reduced tensile strength, and poor ply adhesion.
Technical Breakthrough Addresses Performance Gap
MycoWorks' most recent Rei-Tanâ„¢ iteration represents a substantive technical advancement. The new processing method increases tensile strength, a proxy for overall mechanical properties and durability, from approximately 4 megapascals (MPa) to 18 MPa. This constitutes a 4-5x improvement and doubles the performance of mycelium materials incorporating embedded fabric reinforcement.
The technology's critical attribute lies in its substrate flexibility: Rei-Tanâ„¢ processes mycelium from any source, not exclusively MycoWorks' proprietary Fine Myceliumâ„¢. This enables application to mycelium cultivated through alternative processes globally, potentially at more favourable costs than South Carolina production. The processing technology also integrates with any leather tannery worldwide, not merely the dozen tanneries currently collaborating with MycoWorks.
Economic Pressures Drive Strategic Realignment
The South Carolina facility closure reflects broader economic challenges confronting biomaterials companies. Capital abundance that characterised the sector several years ago has evaporated. Scullin references deteriorating manufacturing conditions: seven consecutive months of decline in the United States ISM Manufacturing PMI, alongside numerous late-stage biotechnology, food, agriculture, and alternative leather companies ceasing operations.
The South Carolina plant's pioneering team addressed infections, yield losses, and operational complexity inherent to novel biomanufacturing processes. However, the facility's cost structure proved unsustainable given current capital costs, particularly when less expensive mycelium sources exist that can be enhanced through Rei-Tanâ„¢ processing.
Industry Maturation and Collaborative Future
Scullin positions the restructuring as reflecting mycelium materials industry maturation. Mycelium leather has achieved recognition amongst fashion, luxury, and design brands, many conducting experiments with the material. Yet adoption remains constrained by scale and cost limitations.
The CEO advocates for collaborative industry development, wherein complementary technologies and expertise combine to unlock commercial potential. He draws historical parallel to cowhide leather adoption, which accelerated following chrome-tanning technology development in the 1980s due to performance improvements that transformation enabled. Rei-Tanâ„¢ potentially provides analogous advancement for mycelium materials, transitioning them from interesting raw materials to commercially viable products.
MycoWorks plans to source mycelium from Asian and European producers during its restructuring period, leveraging global cultivation capacity whilst maintaining proprietary processing expertise.
Implications for Biomaterials Sector
The announcement signals broader challenges confronting vertically integrated biomaterials ventures. Capital-intensive cultivation facilities require substantial ongoing investment, particularly during scaling phases. Companies pursuing simultaneous development of biological production systems and downstream processing face compounded technical and financial risk.
MycoWorks' pivot suggests potential industry structure wherein cultivation and processing specialise separately, cultivation concentrating in regions with favourable economics, whilst processing technology providers add value through proprietary finishing methods. Whether this model proves sustainable depends on multiple factors: availability of consistent-quality mycelium feedstock, intellectual property protection for processing technologies, and ultimate market acceptance of performance-enhanced mycelium materials.
The mycelium leather sector now confronts fundamental questions about optimal industry architecture, capital allocation, and technical priorities as it transitions from venture-funded experimentation toward commercial viability.