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Circulose as feedstock for lyocell

Chinese fibre producer to acquire 18,000 tons of the pulp over a five-year period.

29th March 2023

Innovation in Textiles
 |  Shanghai

Clothing/​Footwear, Sustainable

Swedish textile-to-textile recycling pioneer Renewcell has signed a letter of intent with China Textile Academy Green Fibre, a Chinese lyocell fibre producer, to establish a long-term commercial collaboration around man-made cellulosic fibre production.

The agreement, signed at the  Intertextile Shanghai Apparel Fabrics exhibition, affirms the intent of the two companies to work together to supply lyocell textile fibres made using Circulose, the 100% recycled textile pulp made by Renewcell, to global fashion brands. It has been facilitated by Ekman Group, Renewcell’s exclusive global trading partner.

“With this agreement, we are taking a new step in demonstrating the applicability of Circulose in the commercial-scale production of lyocell fibres,” said Renewcell’s CEO Patrik Lundström. “Lyocell is a high quality, low-impact fibre using a closed loop production process which is highly sought after among our fashion brand partners and will now soon be available incorporating Circulose recycled from textile waste. I am impressed by the capacity and leadership of CTA Green Fibre and look forward to working together with them to make fashion circular together.”

“Renewcell is an outstanding innovative enterprise, and both parties are cooperating fully to promote Circulose,” added Yu Hanjiang, chairman of  CTA Green Fibre. “The commercial application of Circulose in the field of lyocell will provide sustainable and innovative materials for the fashion industry, with broad prospects.”

The agreement provides the framework for an upcoming offtake agreement between the parties which will set out commercial terms for the delivery of 18,000 tons of Circulose dissolving pulp to CTA Green Fibre over five years. It will be used as feedstock in the production of lyocell fibres to be supplied to textile manufacturers and fashion brands worldwide.


Back in Sweden, a fire broke out at Renewcell’s textile recycling facility Renewcell 1 in Sundsvall on March 22nd.

The fire was contained within the shredding area of the plant and caused damage to one of the three shredder units and a filter unit, both of which are now being repaired.

The company's initial assessment was that the clean-up and repair work would be completed within approximately two weeks.

In February, Renewcell produced approximately 650 tons of prime quality dissolving pulp within specification for Circulose, with about 550 tons delivered to customers during the period. Total production output at the plant was approximately 950 tons of dissolving pulp during the period.

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