Circulose to restart commercial-scale production at Ortviken plant in Sweden

Circulose has announced the restart of its commercial-scale production facility at the Ortviken Plant. The company plans to resume output of CIRCULOSE®, a recycled pulp made from discarded cotton textiles, in the fourth quarter of 2026.

“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 Jonatan Janmark, CEO of Circulose.

Mr. Jonatan Janmark, CEO of Circulose

In 2024, following its acquisition by private equity firm Altor, Circulose revised its strategy to focus on securing volume commitments from partner brands before returning to market at scale.

“Our plan was to align the production restart with confirmed demand, and with commitments from 11 brands, we are now moving forward with confidence,” Janmark said. He added that the company has also signed strategic partnerships with fibre producers Tangshan Sanyou, Aditya Birla, and Jilin Chemicals.

Once operations resume, the Ortviken facility will supply fashion brands and fibre manufacturers with recycled raw material at commercial scale. The company said this will support efforts to reduce textile waste sent to landfill and incineration. At present, customer orders are being met using existing inventory produced by Renewcell prior to its bankruptcy.

“Restarting Ortviken is a major milestone for Circulose and for scaling next-generation materials,” Janmark added. “The fashion industry needs solutions that work at industrial scale and integrate seamlessly into existing supply chains. CIRCULOSE® is designed to do exactly that.”

The Ortviken plant is described as the world’s first commercial-scale chemical textile recycling facility. Its reopening follows earlier operational challenges and reflects renewed efforts to establish long-term production of recycled textile materials.