Circulose is restarting commercial-scale production at its Ortviken Plant in Sundsvall, Sweden, with the sustain-tech firm saying it marks “a significant step in scaling next-generation materials for the global fashion industry”.

It plans to resume production of its eponymous recycled pulp made entirely from discarded cotton textiles in Q4 2026.

The Ortviken plant is the world’s first commercial-scale chemical textile recycling facility. The company said the restart “demonstrates that, despite past challenges, the fashion industry is seeking ways to scale proven, real-world solutions that move beyond pilots and into sustained commercial production”.

“The preparations are in full swing, and new pulp is expected to roll out of the factory by the end of the year, ensuring there is no gap in supply,” said CEO Jonatan Janmark.

The move comes after Renewcell, which developed Circulose, had cash flow issues and filed for bankruptcy in early 2024. The business was acquired by private equity firm Altor and under its new owner “set a renewed strategic direction focused on securing volume commitments from partner brands to bring Circulose back to market at scale”.

Having planned to align the production restart with confirmed demand it now has commitments from 11 brands and is “moving forward with confidence,” Janmark said. 
Strategic partnerships have been signed with fibre producers Tangshan Sanyou, Aditya Birla, and Jilin Chemicals.

It all means the company will be able to continue supplying fashion brands and fibre producers with “high-quality recycled raw material at commercial scale, supporting industry efforts to divert textile waste from landfills and incineration”. Currently, orders are being fulfilled with existing inventory produced by Renewcell, prior to its bankruptcy.