Textile recycling plant acquired out of bankruptcy

Sweden-based investment firm Altor has acquired the assets of Renewcell, a Swedish cotton textiles recycling company that declared bankruptcy last February.

“This acquisition marks a new chapter for Renewcell, now renamed Circulose,” Renewcell says. “With Altor’s ownership, there is secure financing for the future of Circulose, ensuring that the company’s pioneering cotton recycling technology continues to thrive on a global scale.”

“We extend our deepest gratitude to our customers, partners and stakeholders for their unwavering support and collaboration during this journey,” Circulose CEO Magnus Lundmark adds. “Together, we will continue to drive positive change, leveraging Altor's expertise and resources to enhance our capabilities and secure a confident future for Circulose and the broader textile community."

Renewcell is a Swedish textile recycling company that was founded by innovators from Stockholm’s KTH Royal Institute of Technology in 2012.

Altor says in bankruptcy, Renewcell has been seeking “a new owner to safeguard and advance the patented process developed by Renewcell to produce Circulose pulp from 100 percent textile waste. Altor now acquires the remaining assets of Renewcell, creating the new company Circulose.”

The new investor refers to the Circulose product as “the only material that has been produced at scale from 100 percent textile waste, based on a closed-loop, chemical recycling process.”

“We don’t shy away from a challenge and this one is worth taking, both for the uniqueness of the patented technology and the urgency of scaling circular solutions for the entire textile and fashion industry, particularly to replace virgin cotton and manmade cellulosic fibers (MMCFs),” says Clara Zverina, a principal of Altor. “We are determined to partner with key stakeholders across the value chain to together unlock the potential of Circulose.”

Circulose is produced at a facility in Ortviken, Sweden, and the recycled-content pulp is used to spin fibers that are turned into fabrics and used in new textile products.

Altor intends “to safeguard this important innovation and build on Circulose as the first puzzle piece to create a global champion for next-gen materials to replace virgin cotton and MMCFs.”

Altor has invested in more than 50 companies, including Sweden-based H2Green Steel and Sweden-based plastics recycling and reprocessing firm Trioworld.

Circulose says its current inventory of pulp and fiber “is ready to meet market demands, supported by our dedicated Circulose Supplier Network partners, who continue to provide high-quality materials. This ensures that the market can confidently move forward with the assurance of an uninterrupted supply chain.”