Proparco’s €70m ($75.98m) loan will support RE&UP in increasing its capacity by building a new textile-to-textile recycling factory in Gaziantep, Türkiye, with equipment including the installation of 8.4MW capacity rooftop solar panels for self-consumption.
This new loan will bolster RE&UP’s environmentally friendly recycling investment and its long-term strategy to help accelerate the textile industry’s transition towards a circular model.
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Proparco highlighted that in 2023 the textile industry accounted for 10% of global emissions with fashion sales expected to grow by 25% between 2016 and 2030.
It explained that decarbonisation pathways for the textile industry rely mostly on decarbonising energy supply and recycling initiatives, adding that RE&UP’s new investment will use electricity produced from 100% renewable energy sources, hence contributing fully to the green transition of the sector.
“We as Proparco are proud of supporting RE&UP Recycling Technologies backed by Sanko Group in their textile recycling investment through which amplified effects on the decarbonisation of the industry will be achieved. The project will also serve to promote circular business models in an environment where social awareness and expectations on the topic are also increasing. This second transaction with Sanko Group, through its circular-tech venture RE&UP, has sealed the strong relationship and common understanding between both parties towards a more sustainable future,” said Stéphane Froissardey, regional director of Proparco.
Fatih Konukoglu, vice chairman of Sanko Holding and chairman of RE&UP Recycling Technologies added: “We are deeply grateful for Proparco’s continued support and investment in our vision for a more sustainable future. This new investment will significantly enhance the ability of RE&UP to scale its next-gen recycle fibre production and textile recycling capacity to 1m tons by 2030 and by doing so, we aim to set a new standard for circularity in the textile industry. This partnership not only strengthens our commitment to reducing environmental impact but also reaffirms our strong relationship with Proparco, propelling us forward as leaders in pioneering circular economy solutions. Together, we are paving the way for a transformative, greener future in our industry.”
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By GlobalDataThis loan is the second financing provided by Proparco to Sanko Group. The first loan of €37m was provided in 2021 for sustainable investments and job creation within the group’s textile subsidiary.
Proparco described the Sanko Group as a well-known business partner and emphasised the group’s sustainable investment strategies align with its core strategies of supporting sustainable and resilient economies as well as protecting the planet.
In May RE&UP showcased its “one-of-a-kind” patented technology that separates polycotton blend into recyclable next-gen cotton and polyester fibres.
