STOCKHOLM – Swedish textile recycling company Renewcell has signed major five-year deal with Chinese viscose manufacturer Tangshan Sanyou to supply 175,000 tonnes of Circulose dissolving pulp recycled from discarded textiles. Renewcell will deliver its recycled Circulose dissolving pulp from its soon-to-be-developed plant in Sundsvall, Sweden. The agreement with Tangshan Sanyou is a key element to securing the financing for the new plant which is set to start production in the first half of 2022. Once operational, it is claimed the new plant will be capable of recycling the equivalent of 300 million t-shirts.
Asked about the financial side of the deal, a spokesperson from Renewcell told Apparel Insider: “The agreement is key to securing external financing to build our next plant. In industrial investment cases, lenders and investors typically want to see these kinds of customer offtake agreements in place. The deal corresponds to two thirds of the total capacity of our next plant and puts us well on our way to commercial viability, in line with our growth plans.”
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