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Renewcell Inks Circulose Fiber Production Deal

Swedish textile-to-textile recycling innovator Renewcell has signed a letter of intent with Daiwabo Rayon Co., a Japanese cellulosic fiber producer, for a long-term commercial collaboration around man-made cellulosic fiber production.

The agreement affirms the two companies’ intent to work together to supply textile fibers made using Circulose, Renewcell’s 100 percent recycled textile raw material, to global fashion brands in the coming years. The agreement has been facilitated by Ekman Group, Renewcell’s exclusive global trading partner.

“Daiwabo is a true leader in viscose fiber production that has excellent long-standing relations with the biggest brands in Asia and the world,” Patrik Lundström, CEO of Renewcell, said. “It reflects very well on the work done by our team to ensure the quality and maximize the potential of Circulose as a feedstock for circular textile fibers.”

Textile recycling innovator Renewcell has signed a letter of intent with Daiwabo Rayon for a collaboration on cellulosic fiber production.
Patrick Lundstrom Courtesy

The letter of intent signed between Renewcell and Daiwabo provides the framework for an upcoming agreement between the parties that will set out commercial terms for the delivery of certain volumes of Circulose dissolving pulp to Daiwabo over a number of years. Daiwabo intends to use Circulose as feedstock in the production of man-made cellulosic fibers to be supplied to textile manufacturers and fashion brands worldwide.

“Our announcement of an agreement with Renewcell…marks the first step in jointly producing our functional regenerated cellulose fiber and products using the recycled textile raw material Circulose,” Kazunari Fukushima, resident of Daiwabo Rayon, said. “We are very excited about our partnership and feel the weight of our responsibility to supply products that are kind to people and the earth.”

In January, Renewcell signed multiyear purchasing agreements with three European textile sorters, ensuring an abundant supply of clothing castoffs for its new, larger facility in Ortviken next year. The deals with Soex in Germany, Texaid in Switzerland and Sweden’s Sysav will lock in thousands of tons of textile waste each year for conversion into Circulose.

The new plant is expected to recycle an annual 60,000 tons of material beginning in July. Through its patented process, Renewcell is able to upcycle cellulosic textile waste, such as cotton clothes, transforming it into a new material called Circulose.