Circulose Restarts Commercial Textile Recycling

Published by The Daily Scout

What happened

Sustainable fashion company Circulose has restarted commercial-scale production at its Ortviken plant in a significant step for textile-to-textile recycling. The move advances the company's efforts to reduce fashion industry waste by converting discarded textiles into new material. Social media discussions show positive sentiment for the initiative, reflecting growing consumer interest in circular fashion.

Why it matters

- The restart follows the bankruptcy of the original company, Renewcell, in February 2024; the assets were acquired by the Swedish private equity firm Altor, which rebranded the company as Circulose. - The Ortviken plant, located in Sundsvall, Sweden, is the world's first commercial-scale chemical textile recycling facility. - New pulp production is scheduled to begin in the fourth quarter of 2026, with the plant aiming to reach an annual capacity of 60,000 tonnes of Circulose pulp. - The company's new strategy under CEO Jonatan Janmark involves securing direct volume commitments from brands before scaling production; so far, 11 brands including H&M Group, Mango, and Marks & Spencer have signed on. - Helena Helmersson, the former CEO of H&M Group, serves as the chairman of the board for the new company. - Circulose has also established strategic partnerships with major fiber producers, including Tangshan Sanyou, Aditya Birla, and Jilin Chemicals, to integrate its recycled pulp into the existing textile supply chain. - The Circulose pulp is made from 100% discarded cotton textiles and is used to create man-made cellulosic fibers like viscose and lyocell for new apparel. - While new production is pending, current orders are being fulfilled with existing inventory that was produced by Renewcell before the bankruptcy.

Key numbers

  • - The restart follows the bankruptcy of the original company, Renewcell, in February 2024; the assets were acquired by the Swedish private equity firm Altor, which rebranded the company as Circulose.
  • New pulp production is scheduled to begin in the fourth quarter of 2026, with the plant aiming to reach an annual capacity of 60,000 tonnes of Circulose pulp.
  • The company's new strategy under CEO Jonatan Janmark involves securing direct volume commitments from brands before scaling production; so far, 11 brands including H&M Group, Mango, and Marks & Spencer have signed on.
  • The Circulose pulp is made from 100% discarded cotton textiles and is used to create man-made cellulosic fibers like viscose and lyocell for new apparel.

What happens next

  • New pulp production is scheduled to begin in the fourth quarter of 2026, with the plant aiming to reach an annual capacity of 60,000 tonnes of Circulose pulp.

Quick answers

What happened in Circulose Restarts Commercial Textile Recycling?

Sustainable fashion company Circulose has restarted commercial-scale production at its Ortviken plant in a significant step for textile-to-textile recycling. The move advances the company's efforts to reduce fashion industry waste by converting discarded textiles into new material. Social media discussions show positive sentiment for the initiative, reflecting growing consumer interest in circular fashion.

Why does Circulose Restarts Commercial Textile Recycling matter?

The restart follows the bankruptcy of the original company, Renewcell, in February 2024; the assets were acquired by the Swedish private equity firm Altor, which rebranded the company as Circulose. The Ortviken plant, located in Sundsvall, Sweden, is the world's first commercial-scale chemical textile recycling facility. New pulp production is scheduled to begin in the fourth quarter of 2026, with the plant aiming to reach an annual capacity of 60,000 tonnes of Circulose pulp. The company's new strategy under CEO Jonatan Janmark involves securing direct volume commitments from brands before scaling production; so far, 11 brands including H&M Group, Mango, and Marks & Spencer have signed on. Helena Helmersson, the former CEO of H&M Group, serves as the chairman of the board for the new company. Circulose has also established strategic partnerships with major fiber producers, including Tangshan Sanyou, Aditya Birla, and Jilin Chemicals, to integrate its recycled pulp into the existing textile supply chain. The Circulose pulp is made from 100% discarded cotton textiles and is used to create man-made cellulosic fibers like viscose and lyocell for new apparel. While new production is pending, current orders are being fulfilled with existing inventory that was produced by Renewcell before the bankruptcy.

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