• 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.