STOCKHOLM – The remaining assets of textile recycling business, Renewcell, have been acquired by Altor, an investment firm based in Sweden. Renewcell will now be renamed as Circulose, the name of the company’s core product. With Altor’s ownership, there is said to be secure financing for the future of Circulose, “ensuring that the company’s pioneering cotton recycling technology continues to thrive on a global scale,” according to a statement by Altor.
The technology of recycling cotton to make a dissolving pulp for man made cellulosic fibre (MMCF) producers, such as viscose, has been a mainstay of the company’s operations.
Renewcell encountered financial problems in late 2023 and went bust in the early new year.
A statement from Altor said: “Circulose pulp, the innovative solution for textile-to-textile circularity, will remain at the forefront to create a sustainable future for the fashion and textile industry. This commitment to innovation and sustainability is further strengthened by Altor’s investment, which provides the resources and network needed to scale Circulose’s impact and reach. The current inventory of Circulose pulp and fibre is ready to meet market demands, supported by our dedicated Circulose Supplier Network (CSN) 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.”
“We extend our deepest gratitude to our customers, partners, and stakeholders for their unwavering support and collaboration during this journey,” said Magnus Lundmark, CEO at Circulose. “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.”
Our understanding is that the loss of Lenzing as a key customer last year was a major factor in Renewcell’s demise. Pricing was also a sticking point for customers. It would be interesting to know what changes the new owners intend to make to ensure profitability moving forwards. We hope to provide an interview with Altor in the coming weeks.
