Circulose (formerly Renewcell) teams up with Chinese fibre giant to accelerate textile-to-textile recycling

Swedish textile recycling firm Circulose develops technology to transform cellulose-based textile waste into new materials.

In 2024, the company, previously known as Renewcell, filed for bankruptcy. Investment firm Altor acquired the assets and rebranded the company as Circulose, with former H&M CEO Helena Helmersson appointed as chairperson and Jonatan Janmark, formerly of McKinsey, stepping in as the new CEO.

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Since the bankruptcy, the company has not yet commenced production at its facility in Ortviken in Northern Sweden. However, recent developments suggest progress is on the horizon.

Circulose has secured a strategic partnership with Tangshan Sanyou Chemical Fiber, a prominent Chinese player in the cellulose fibre industry.

According to the press release, the collaboration aims to merge Circulose’s textile recycling technology with Tangshan Sanyou’s production capabilities.

"This represents a crucial step forward in our global expansion strategy, fostering closer, more in-depth collaborations with innovative fiber producers and like-minded brands," commented CEO Jonatan Janmark.

The partnership is not entirely new. Tangshan Sanyou has been a partner of Circulose since the early days of Renewcell and is the world’s largest user of Circulose pulp for its fibre production.

"Tangshan Sanyou has always believed in the strong potential of recycling cotton textile waste, which is essential for fostering a green and sustainable industry," said Zhang Dongbin, the company's vice president.

The joint goal, according to the press release, is to accelerate what is known as "textile-to-textile" recycling by increasing the use of recycled materials instead of virgin resources. This involves striving for a more circular textile loop, where old clothes and production waste can be transformed into new garments rather than discarded.