**London**: Tangshan Sanyou Chemical Fiber has signed a landmark agreement with Circulose, securing 200,000 tonnes of dissolving pulp over five years. This partnership aims to scale the production of ReVisco recycled fibres and signifies a pivotal move towards sustainability in the textile industry following Renewcell’s restructuring.
Tangshan Sanyou Chemical Fiber, a prominent Chinese supplier of viscose fibres, has entered into a substantial supply agreement with Circulose, which is formally recognised as Renewcell. This partnership is positioned as a pivotal development in the commercialisation and scaling of Circulose’s dissolving pulp, significantly enhancing the reach of Tangshan Sanyou’s ReVisco recycled fibre brand in international markets.
The agreement, signed in 2023, encompasses the purchase of 200,000 tonnes of Circulose over five years, a move aimed at integrating cotton textile waste into the production of high-quality fibres. However, in February 2024, Renewcell faced financial difficulties that culminated in bankruptcy due to dwindling orders and an inability to secure additional financing. This situation led to the company’s acquisition by the Swedish private equity firm Altor, which has since revitalised the collaboration with Tangshan Sanyou.
Jonatan Janmark, CEO of Circulose, commented, “We are thrilled to establish a strong strategic partnership with Tangshan Sanyou. This represents a crucial step forward in our global expansion strategy, fostering closer, more in-depth collaborations with innovative fibre producers and like-minded brands.” He emphasised that this partnership is the first significant collaboration following Renewcell’s restructuring and is deemed essential for ensuring the sustainable development of ReVisco fibres using Circulose pulp in a reliable manner.
The synergy between Circulose’s recycling technology and Tangshan Sanyou’s comprehensive supply chain is anticipated to enhance the quality, supply capacity, and pricing of ReVisco branded fibres, thereby meeting the evolving demands of the market. Zhang Dongbin, the executive vice president of Tangshan Sanyou, expressed optimism about the potential of recycled cotton textile waste and the strategic direction of Circulose under its new ownership. He stated, “We have unwavering confidence in the market potential of Circulose and its new strategic direction, and we are excited about our future collaboration.”
Zhang further noted that with the long-term investment from Altor Capital and the strategic insights provided by Helena and Jonatan, Circulose is poised to unite brands and suppliers, shaping a new era in the circular textile industry. This partnership underscores a broader commitment within the textile industry towards sustainability and the utilisation of recycled materials.
Source: Noah Wire Services
