Skip to content

New plant for the recycling of clothes

Equipped with ground-breaking technology, the listed Swedish company Renewcell is manufacturing its pulp product Circulose®, which enables clothes to be recycled for use in the manufacture of new clothing.

The fashion industry is becoming circular

Facts

Transaction: Export credit
Amount: Skr 520 million
Maturity: 10.5 years
Borrower: Renewcell
Guaranteed by: Finnvera

Facts

Transaction: Export credit
Amount: Skr 520 million
Maturity: 10.5 years
Borrower: Renewcell
Guaranteed by: Finnvera

Renewcell uses a technology that was developed by researchers at the KTH Royal Institute of Technology. The technology is similar to what is used in the paper and pulp industry, where parts of trees are treated to produce cellulose fibers for the manufacturing of paperboard, paper and clothing.

The plan is for Renewcell to export essentially all of its cellulose pulp production Circulose® to spinning and weaving mills, which will then sell the products to brands such as H&M and Levi’s. In a few years, it will be possible to purchase new jeans and T-shirts that have been manufactured from old jeans and T-shirts! The fashion industry is becoming circular instead of linear.

“Renewcell treats old clothes and fabrics to extract cellulose fibers that can then be used for the manufacturing of new clothes. This is a ground-breaking process since it has not previously been possible from a technological standpoint to recycle textiles.”

ANNA KARIN LJUNG, ACCOUNT MANAGER AT SEK

The next step of Renewcell’s development is to construct a new plant with a greater capacity, which is what SEK has financed. The plant will be constructed in recently discontinued industrial premises at SCA’s paper mill in Ortviken outside of Sundsvall. By using SCA’s old facility, an industrial plant, existing infrastructure, logistics solutions and, not least, process industry expertise that are present at the location can be reused. In addition, new jobs can be provided that were lost when SCA recently discontinued its newsprint machine as a result of declining demand.

“I am proud that Renewcell meets SEK’s requirements to finance the development of a circular and sustainable textile industry. SEK is well versed in the pulp industry, which is important for our continued efforts to develop our innovation.”

PATRIK LUNDSTRÖM, CEO OF RENEWCELL

The commercialization of Renewcell’s Circulose® pulp products is ongoing and global clothing brands, including H&M, and Levi’s have already launched smaller collections produced with textiles made from Circulose®. There is a high level of interest from other global clothing brands, and Renewcell has received several expressions of interest.

Would you like to know more?

Contact Anna Karin for more information.

anna-karin.ljung@sek.se

08-613 85 33

Search