Swedish textile-to-textile recycling firm Renewcell is broadening the commercial streams for its circular Circulose material by growing its Circulose Supplier Network.
Circulose, a dissolving pulp product made entirely of recycled textiles, can be used as an input for man-made cellulosic fibers such as viscose, lyocell and modal. Half a year after making its first commercial delivery of Circulose in December 2022, Renewcell launched the Circulose Supplier Network in July 2023 with 47 yarn and textile manufacturing “early adopters” across 12 countries. With the addition of the latest cohort of 35 partners, announced Feb. 21, the network now counts 151 members.
The Spinnova and Lenzing partner, which is currently undergoing a strategic review to explore funding possibilities following lower than expected sales volumes to fiber manufacturers, sees the now-larger Circulose Supplier Network supporting “economies of scale.”
“Building this network only increases the opportunities we have to reach more brands and supply them with a variety of fabric qualities,” Tricia Carey, chief commercial officer at Renewcell, told Sourcing Journal.
For the latest round of Circulose Supplier Network partners, Renewcell focused on growing its presence in three key apparel production areas: Turkey, South Asia and Southeast Asia. The goal is to establish localized and vertical manufacturing options for a range of Circulose-based textiles.
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In South Asia, the focus was on building a hub nearby to fiber producer Aditya Birla Group. Based in India, Birla Cellulose signed a letter of intent with Renewcell in 2022, aiming to use 30,000 tons of Circulose each year in the production of Birla’s Liva Reviva fibers. “Fiber production from Birla Cellulose in India is increasing, and to accommodate specific trade regulations, building a local value chain solves those issues, such as restricted fiber imports from China to India,” Carey said.
Fourteen of the new members are based in Turkey, which Renewcell targeted because of its strong presence in cotton. The company not only wants to offer an alternative fiber choice to cotton, but Circulose is made from cotton waste, enabling circular systems. “Turkey’s large cotton textile market, denim industry and growing cotton recycling capabilities allow for closed-loop processes for sourcing post-industrial cotton waste from the mills and supplying viscose made with Circulose to those same mills, creating a circular product,” said Carey.
Along with Turkey, new supplier partners are located in Bangladesh, China, India, Indonesia, Portugal, Sri Lanka and Taiwan.
“Consumers are increasingly conscious of the environmental impact of their purchases and are seeking out products that align with their values,” Srimal Wickremasinghe, managing director of Sri Lankan-based Brushes & Needles, said in a statement about its partnership with Renewcell. “Recognizing this shift in consumer behavior, we have invested significant time and resources into creating textile products with Circulose that not only meet the highest standards of quality and performance but also prioritize sustainability throughout their entire lifecycle.”
Per Carey, the next targets for the Circulose Supplier Network are Central and South America to provide nearshore options for U.S. brands, as well as growing capacities in Italy for the luxury market.
“The network was initially built based on recommendations from our key brand partners and has snowballed from there,” said Carey. “Once the core network was established, we leaned on those trusted suppliers to suggest who they work with well.”
Renewcell’s industrial-scale pulp production at its Renewcell 1 plant in Sundsvall, Sweden has a capacity of up to 60,000 metrics tons of pulp each year, with the goal of ramping up to 120,000 metric tons annually. In addition to its partnerships with mills, yarn spinners and garment manufacturers, the H&M-backed company’s pulp has featured in collections from brands like Ganni and Calvin Klein.
“To scale textile-to-textile recycling the market needs systems in place and commercial,” said Karla Magruder, founder and president of Accelerating Circularity. “Renewcell’s Circulose Supplier Network is the first example of putting together all the pieces through commercial entities. The ability to find and purchase yarns, knits and/or wovens at a variety of suppliers in a wide variety of geographic regions makes it possible for the next step, brands to do their part in building circular systems.”