Circulose Taps Longtime Cellulosic Collaborator to Drive Circularity

Yahoo

04-04-2025

Circulose is inching closer to commercialization.
The Swedish sustain-tech firm established a 'strong strategic partnership' with longtime backer Tangshan Sanyou, a 'close collaborator' of the recycled pulp's former puppeteer, Renewcell, since 2019.
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In fact, the Chinese man-made cellulosic fiber (MMFC) manufacturer was the first commercial producer of Circulose-based fibers in the world—and the first to commit to sourcing significant volumes from the textile-to-textile recycler, former CEO Patrik Lundström said in March 2023.
Now, Tangshan Sanyou adds another milestone to its track record, becoming the first heavyweight partner to back the born-again Circulose. By combining the latter's textile recycling technology with China's large-scale supply chain, the former's fibers will 'not only meet the growing market demand for sustainable textiles,' the partners said, but 'drive a transformative shift from raw materials to fabrics on a global scale' as well.
'This represents a crucial step forward in our global expansion strategy, fostering closer, more in-depth collaborations with innovative fiber producers and like-minded brands,' said Jonatan Janmark, CEO of Circulose. 'As the first major strategic partnership since the restructuring of Circulose, this collaboration will serve as a cornerstone of our success.'
Rescued from bankruptcy by Swedish private equity firm Altor in June 2024, the resulting, rechristened Circulose continued bolstering its then-nascent supplier network (CSN) following cautions that sales failed to perform up to snuff. As a partner since Renewcell's salad days, Tangshan Sanyou remains the world's largest user of Circulose pulp for fiber production, per the duo.
The manufacturer—which claims annual export volumes accounting for more than 40 percent of China's total viscose exports—previously shared goals of becoming the first to commercialize 100 percent Circulose content fibers, as underscored by the sheer volume of Circulose that the Hong-Kong based fiber producer purchased between over the years.
Renewcell signed a five-year deal with Tangshan Sanyou in October 2020 for 175,000 metric tons of materials made from discarded textiles. This 'industry first' agreement was crucial in securing the funds for Renewcell 1: the first-ever industrial-scale chemical textile-to-textile recycling facility in Sundsvall, Sweden. The viscose powerhouse later upped the ante and committed to 200,000 metric tons of Circulose in August 2023; a move lauded by Canopy, which then lauded Tangshan Sanyou as a top-tier company in its annual Hot Button Report.
That October, Inditex inked an 'inflection-point pledge' Circulose commitment with Tangshan Sanyou, given its status as one of several Chinese fiber producers plugged into Renewcell's sprawling supplier network. Per the terms of the deal, The initiator—and member—of the Collaboration for Sustainable Development of Viscose (VC) was to produce a fiber blending Circulose with a forest-friendly cellulosic for Inditex's suppliers.
'Together with Tangshan Sanyou and our brand partners, we will ensure the scalable development of ReVisco fibers by using Circulose pulp in a predictable and controlled manner,' Janmark said. 'We highly value our long-term partnership with Tangshan Sanyou and look forward to achieving mutual success as we shape the future of the industry.'
Tangshan Sanyou, for the record, has 'always believed' in the potential of recycling cotton textile waste as it's 'essential for fostering' a green industry. The green developer's ReVisco fibers, produced using Circulose pulp, will work to fulfill the holy trinity of market demand—quality, capacity and cost—in turn, advancing both brands' status in the space.
'We have unwavering confidence in the market potential of Circulose and its new strategic direction, and we are excited about our future collaboration,' said Zhang Dongbin, executive vice president of Tangshan Sanyou Chemical Fiber. 'With the long-term investment support of Altor Capital and the market-driven, brand-focused strategies led by Helena and Jonatan, we believe Circulose will bridge the gap between brands and suppliers, pioneering a new era for the circular textile industry.'