Renewcell explained that with Altor's ownership, there is secure financing for the future of Circulose, ensuring the global success of its pioneering cotton recycling technology. Altor's investment will support Circulose with the resources and network needed to scale Circulose's impact and reach.
Non-profit Canopy's executive director Rycroft shared she was confident that the "phoenix would rise from the ashes."
According to her, the fashion value chain is now better primed to ensure these innovations have an easier path to market and scale.
Rycroft continued: "We are excited that Altor’s investment in Circulose (formerly Renewcell) provides all of us with a second chance."
The recycling company stated that its current inventory of Circulose pulp and fibre is ready to meet market demands, supported by its Circulose Supplier Network (CSN) partners who provide high-quality materials. This, it believes, guarantees an uninterrupted supply chain, giving the market confidence.
Circulose highlighted its technology for recycling cotton to make a dissolving pulp for Manmade cellulosic (MMCF) producers, such as viscose, has been a cornerstone of the company’s operations. According to Altor, this patented process which produces Circulose pulp from 100% textile waste, is unique and has the potential to make the textile and fashion industry circular and low-carbon.
Altor said its investment aims to safeguard this "important innovation" and build on Circulose as the "first puzzle piece" to create a global champion for next-gen materials to replace virgin cotton and manmade cellulosic (MMCF) fibres.
Circulose pulp, described as an innovative solution for textile-to-textile circularity, will remain at the forefront to create a sustainable future for the fashion and textile industry, added Circulose.
Magnus Lundmark, CEO of Circulose, expressed gratitude to customers, partners, and stakeholders for their support and collaboration. He emphasised the importance of Altor's expertise and resources in enhancing Circulose's capabilities and securing its future.
Clara Zverina, principal at Altor, remarked: "We don’t shy away from a challenge and this one is worth taking, both for the uniqueness of the patented technology and the urgency of scaling circular solutions for the entire textile and fashion industry, particularly to replace virgin cotton and MMCF. We are determined to partner with key stakeholders across the value chain to together unlock the potential of Circulose."
Circulose reiterated its commitment to maintaining the highest standards of quality and reliability through the transition into this exciting new phase of building a "resilient, innovative, and circular future" for the textile industry.
This announcement follows Circulose's February bankruptcy filing at the Stockholm District Court due to a lack of sufficient financing and not enough interest in recycled fibres from the wider fashion industry.
The decision came after negotiations with its two largest shareholders Swedish fashion brand H&M and biotech company Girindus, as well as its existing lenders, potential new investors and other stakeholders.
Circulose later confirmed it had received multiple purchase bids ahead of its 28 March deadline and was undergoing a "thorough review process," with a final closing expected in the middle of April.
More recently, Swedish company Biosorbe bought a pilot factory in Kristinehamn from Circulose to expand the production of its oil-absorbing materials.
"A second chance" for the fashion industry
Stakeholders have said the acquisition marks a new chapter for the company and the sector and creates a significant opportunity to bolster innovation and scale circular practices across the supply chain.
Canopy shared that a rally from many of its brand partners helped build the path forward for Circulose: "This included over 30 letters from brands expressing an intent to purchase Circulose products and an industry collaboration to streamline the initial supply chain. Agreeing on matters such as optimising one blend has helped to prime the value chain, setting the flagship material up for stronger adoption."
Canopy's Rycroft further said: "Kudos to the many brands, producers, and suppliers across the value chain that stepped forward over the past three months to demonstrate the demand and commitment for low-carbon Next Generation Solutions like Circulose. Congratulations and thanks to Altor for investing in this crucial technology that allows the fashion industry to decouple its operations from high-carbon raw materials."
Canopy highlighted that this acquisition is a testament to the financial community's growing awareness of innovative circular technologies' profitability, scalability, and viability.
