Altor Acquires Remaining Assets Of Renewcell, Ushering In A New Era As Circulose

STOCKHOLM — June 4, 2024 — Renewcell, a cotton textile recycling firm, is pleased to announce that its remaining assets have been acquired by Altor, a respected investment firm based in Sweden. This acquisition marks a new chapter for Renewcell, now renamed Circulose. With Altor’s ownership, there is secure financing for the future of Circulose, ensuring that the company’s pioneering cotton recycling technology continues to thrive on a global scale.

The technology of recycling cotton to make a dissolving pulp for MMCF producers, such as viscose, has been a cornerstone of the company’s operations. CIRCULOSE® pulp, the innovative solution for textile-to-textile circularity, will remain at the forefront to create a sustainable future for the fashion and textile industry. This commitment to innovation and sustainability is further strengthened by Altor’s investment, which provides the resources and network needed to scale Circulose’s impact and reach.

The current inventory of CIRCULOSE pulp and fiber is ready to meet market demands, supported by our dedicated CIRCULOSE Supplier Network (CSN) partners who continue to provide high-quality materials. This ensures that the market can confidently move forward with the assurance of an uninterrupted supply chain.

“We extend our deepest gratitude to our customers, partners, and stakeholders for their unwavering support and collaboration during this journey,” remarked Magnus Lundmark, CEO at Circulose.

“Together, we will continue to drive positive change, leveraging Altor’s expertise and resources to enhance our capabilities and secure a confident future for Circulose and the broader textile community.”

Circulose is committed 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.

Statement from Altor:

Renewcell is a Swedish textile recycling company that was founded by innovators from Stockholm’s KTH Royal Institute of Technology in 2012. In February 2023, the company filed for bankruptcy and has since looked for a new owner to safeguard and advance the patented process developed by Renewcell to produce CIRCULOSE pulp from 100 percent textile waste. Altor now acquires the remaining assets of Renewcell, creating the new company Circulose.

Circulose is globally the only material that has been produced at scale from 100 percent textile waste, based on a closed-loop, chemical recycling process. The patented process to produce CIRCULOSE pulp from 100 percent textile waste is unique and has the potential to make the textile and fashion industry circular and enable a shift to a low-carbon economy.

Today, the material is produced in a strategically located factory in Ortviken, a region with historically significant know-how from the pulp and paper industry. The CIRCULOSE pulp is used to spin fibers, these fibers are turned into fabrics and used for new high-quality textile products. Altor invests 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 MMCF fibers.

“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,” said Clara Zverina, principal at Altor

Posted: June 4, 2024

Source: Renewcell / Altor