#Recycling / Circular Economy

2021-07-01

EU backs Renewcell to boost circularity in the fashion industry

The European Investment Bank (EIB) has signed a loan agreement of up to SEK 311 million with Renewcell from Sweden. The loan was extended under “InnovFin – EU Finance for Innovators”, with the financial backing of the European Union under Horizon 2020, the EU’s programme for research and innovation. The full effectiveness of the agreement is contingent upon approval of the terms at an extraordinary general meeting by the shareholders of Renewcell. A summons to the extraordinary general meeting will be communicated at a later time.

European Investment Bank lends up to SEK 311 million (€30.75 million) to fashion industry innovator Renewcell for first commercial scale factory in Sundsvall.

Renewcell’s product Circulose® is the only commercially available textile-to-textile recycled material of virgin equivalent quality.

The credit line is supported under InnovFin, funded by the EU’s Horizon 2020 research and innovation programme.

The Sweden-based fashion innovator has devised a way to turn discarded clothing into Circulose®, a pulp of which new fabric can be made, thus boosting circular economy as a concept in the fashion industry. After proving their concept, Renewcell will use the EIB-loan to build their first full commercial-scale textile recycling plant, able to produce 60,000 tonnes per year, at the Ortviken industrial site near Sundsvall.

In the coming decade, the global middle class is expected to continue to grow, which will cause an increase in fashion consumption. Thus, and with an eye to climate change, the fashion industry needs to shift to circularity. In its bid to make the fashion industry more circular, Renewcell’s technology can be an important factor in reaching the EU’s target for waste reduction, as well setting the tone for the development of the European recycling industry. The company is able to supply commercial volumes of 100% textile-to-textile recycled materials, and is now scaling up to meet the growing demand for its product Circulose® with backing from Europe.

Mariya Gabriel, European Commissioner for Innovation, Research, Culture, Education and Youth, said: “I am delighted to announce our first circular economy project supported under InnovFin Energy Demonstration Projects. Not only it will be a crucial addition to our portfolio, I expect it to pave the way for several new projects in this domain, which we need to accelerate in order to reduce waste and pollution.”

Renewcell CEO, Patrik Lundström, added: “We see the investment at Ortviken, Sundsvall as part of an Industrial Evolution to sustainability, in which we put existing skills, infrastructure and know-how of Swedish industry into a new circular context. We are proud to have the backing of the EIB in our effort to make fashion circular at scale.”

“When it comes to revolutionising existing industries, this really is cutting-edge." said EIB Vice-President Thomas Östros. “As the EU’s climate bank, it is definitely a priority for us to support projects that can turn around current business models, to make them more sustainable or even circular. After financing Northvolt and Nilar’s new battery concepts, this is yet another innovative Swedish company we are very proud to get behind. Renewcell has the potential to seriously reduce the climate impact of the fashion industry, something we are happy to assist with.”

Texprocess 2026: Automation, digitalisation and AI redefine textile processing

Making investment decisions in textile processing has become significantly more demanding. Increasing energy costs, a shortage of skilled labour and ongoing geopolitical uncertainties are compelling companies to focus on technologies that deliver clear gains in efficiency and process reliability. This applies equally to apparel manufacturing and to the processing of technical textiles and high-performance materials. As a result, modernisation initiatives are assessed more carefully – even as the need to upgrade production systems continues to intensify.

Techtextil 2026: Between innovation pressure & market reality

From 21 to 24 April 2026, Techtextil in Frankfurt am Main will once again become the central meeting point for the international technical textiles and nonwovens industry. Running in parallel, Texprocess will focus on the industrial implementation of textile processing technologies as the leading platform in this field. Together, the two trade fairs form a closely integrated presentation and working platform along the entire textile value chain – from material development to finished applications.

Between geopolitical pressure and industrial resilience

In this interview, Dr. Janpeter Horn (VDMA) discusses the current challenges facing textile machinery manufacturers, shaped by geopolitical tensions, regulatory developments and subdued investment. He also outlines why innovation strength, integrated solutions and strategic positioning remain key to global competitiveness.

RE&UP contributes to Global Fashion Summit 2026 circularity discussion

RE&UP contributed to the global conversation on textile circularity at Global Fashion Summit 2026 in Copenhagen, where Fatih Konukoğlu, Chairman of RE&UP and Vice Chairman of Sanko Holding, took part in both the keynote session “The New Rules” and the panel discussion “A Reckoning and Renewal for Circular Horizons”, alongside leaders from H&M Group, Looper Textile Co. and Sourcing Journal.

Europe’s textile future at a turning point: New 2030 Circularity Blueprint aims to scale recycling and unlock investment opportunities

The EU textile system is at a critical crossroads. Today, less than 1% of discarded garments are recycled into new garments, despite EU-wide obligations for separate collection. In response, Global Fashion Agenda (GFA) is launching the 2030 Circularity Blueprint, in partnership with ReHubs. This ambitious initiative is designed to support the transformation of the EU textile ecosystem to advance textile-to-textile recycling and drive the transition to a circular economy.

Circulose and CTA announce collaboration to enable lyocell fibers using CIRCULOSE® pulp

Circulose has announced an agreement with China Textile Academy Green Fibre (CTA) to offer lyocell fibers produced using CIRCULOSE® pulp. Producing lyocell from recycled pulp at commercial scale is an important step in making textile-to-textile recycled materials available across a wider range of textile applications.

Saurer at ITM 2026: Answering markets needs for flexibility

The textile industry is facing unprecedented challenges: geopolitical tensions, natural disasters and pandemics and are changing market conditions overnight. Today, flexibility is no longer an option, but a survival strategy. At the ITM 2026 in Istanbul, Saurer will be demonstrating how modern machine technology delivers flexibility – from bale to yarn – in hall 7 at booth 709 A.

Barmag and Neumag showcase innovations across all manmade fiber processes

For the first time, Barmag is presenting itself alongside its new parent company, Rieter: At this year’s ITM in Istanbul, both companies will be represented from June 9 to 13 at the Tüyap Fair Convention and Congress Center in Hall 7, Booth 702B. As a technology leader in the field of chemical fiber equipment, Barmag will showcase its entire portfolio of systems for filament yarn, staple fiber, and nonwoven production, as well as solutions for the networked factory.

Walter Reiners Foundation Prize awarded to three ITA graduates

Sabina Dann, Lukas Balon and Annegret Storm from the Institut für Textiltechnik (ITA) of RWTH Aachen University were awarded the Walter Reiners Foundation Prize by the German Engineering Federation (VDMA) for their master’s and bachelor’s theses. Peter Dornier, Chairman of the Walter Reiners Foundation, presented the awards during Techtextil at the VDMA stand in Frankfurt am Main, Germany.