Swedish textile-to-textile recycling company Renewcell announced that no metric tonnes of dissolving pulp was delivered to customers of the 1,339 metric tons of "prime quality" dissolving pulp that was produced between 1-30 November.
Toby Lawton, chief financial officer at Renewcell explained due to the lack of sales volumes in November, the monthly production volume was lower than the production capacity, in order to not affect cash flow negatively.
Lawton expects the production volume for December to be below the production capacity due to expected lower sales volumes.
Renewcell developed a patented process that the company said enables the recycling of cellulosic textile waste, such as worn-out cotton clothes and production scraps by transforming it into a "pristine" new material called Circulose.
However, Renewcell has been struggling with sales lately attributed to the current market dynamics. In a recent announcement the company's board mentioned the appointment of Magnus Håkansson as the new acting CEO following a recent slump in sales.
The board, recognising a slower-than-anticipated progression in the value chain and subsequent lower sales growth, deemed it "necessary" to appoint a new CEO.
Company filings for 'eco material' halves (November 2018 to November 2023)
According to apparel company filings data shared by GlobalData, the mentions of 'eco material' grew 50 times by 2022, which was also the highest ever across the industry.
However, by 2023 mentions for 'eco material' came down to 25, half in comparison to the previous year. This was followed by keyword 'material' being mentioned 20 times, while both 'environment' and 'sustainable' were used 8 times each in 2023.
Eco materials, often made from renewable resources or recycled materials, are environmentally friendly and sustainable.
Despite upcoming regulations and a push for a sustainable and circular industry, Renewcell's acting CEO Håkansson believes the demand in terms of hard orders from the brands is coming along with "less urgency" than the company had expected.
While production from the company’s pilot production plant in Kristinehamn has resulted in 250 successful launches of capsule collections with brands such as H&M, Inditex and Levi Strauss, it would appear brands are committing to lower volumes of alternative fibres.
The company justified its decision to conduct a strategic review following lower-than-expected sales volumes to fibre producers in its third quarter as well as subdued sales in October.
Renewcell added that its anticipated sales volumes for November were projected to align with the lower than expected figures in October. It stated that discussions with potential customers are ongoing, however the timing of when orders will be secured remained uncertain.
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