“The preparations are in full swing, and new pulp is expected to roll out of the factory by the end of the year, ensuring there is no gap in supply,” said Jonatan Janmark, CEO of Circulose.

In 2024, under new ownership by private equity firm Altor, Circulose set a renewed strategic direction focused on securing volume commitments from partner brands to bring CIRCULOSE® back to market at scale.

“Our plan was to align the production restart with confirmed demand, and with commitments from 11 brands, we are now moving forward with confidence,” Janmark said. He added that the company has also signed strategic partnerships with fiber producers Tangshan Sanyou, Aditya Birla, and Jilin Chemicals.

With the Ortviken plant back in operation, Circulose will be able to continue supplying fashion brands and fiber producers with high-quality recycled raw material at commercial scale, supporting industry efforts to divert textile waste from landfills and incineration. Currently, orders are being fulfilled with existing inventory produced by Renewcell, prior to its bankruptcy.

“Restarting Ortviken is a major milestone for Circulose and for scaling next-generation materials,” Janmark added. “The fashion industry needs solutions that work at industrial scale and integrate seamlessly into existing supply chains. CIRCULOSE® is designed to do exactly that.”

The Ortviken plant is the world’s first commercial-scale chemical textile recycling facility. Its restart demonstrates that, despite past challenges, the fashion industry is seeking ways to scale proven, real-world solutions that move beyond pilots and into sustained commercial production.