The €450 million (approximately $500 million) project is being financed through a mix of equity and debt and aims to access additional state support, including France’s Strategic Projects Guarantee. Circ CEO Peter Majeranowski told Reuters that the plant represents a turning point for the textile industry, which struggles with recycling blended fabrics that dominate today’s clothing.

Circ’s hydrothermal technology allows polyester to be broken down without damaging the cotton, enabling both fibers to be recovered and reused in a single process. Retailers such as Inditex (parent company of Zara) and Patagonia have already invested in Circ and are using its recycled materials in their products.

The new facility is intended to serve as a model for future sites around the globe, as demand grows from brands and suppliers working to meet stricter climate and sustainability goals.