Coordinated by the German Institutes for Textile and Fibre Research Denkendorf (DITF), the ALADIN initiative is supported by the EU under the Horizon Europe programme, with €5m ($5.7m) in funding.

The project began activities in May 2026 and focuses on integrating digital platforms, new business models and advanced recycling methods with the goal of establishing circular textile manufacturing systems at scale.

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Project participants include partners from Germany, Romania, Belgium, France, the Czech Republic and Italy, encompassing expertise in design, embroidery, digitisation, digital printing, recycling, AI and microfactory production.

The ALADIN consortium’s approach is based on four pillars, which include developing a digital services platform for small and medium-sized enterprises (SMEs), strengthening regional production networks, advancing recycling strategies, and increasing the use of local and renewable raw materials.

DITF says it aims to create a collaborative infrastructure, connecting all steps of the textile value chain from design and manufacturing to customer service and recovery for recycling.

Among the planned technology developments are a module for a digital product passport, which would enable traceability and promote sustainable end-of-life management, and an AI-powered eco-design assistant to support environmentally conscious product development.

The project also targets advancements in recycled materials, including the manufacture of ring-spun yarns from recycled cotton.

The ALADIN consortium will apply its concepts in three pilot use cases: a semi-automatically produced T-shirt, a smart parka and a circular, adaptable blazer dress.

All items will be produced locally in microfactories, tailored to individual customer specifications, and utilise sustainable materials, such as bio-based fibres and recycled textiles, with consideration given to ease of recycling at the end of each product’s lifecycle.

The project actively engages SMEs and start-ups through two open calls for proposals, and stakeholders are included in the design and development of the digital platform.

Further ALADIN will support broader technological innovation by encouraging advancement in areas such as automation, production processes and digital services within the ecosystem.

Long-term objectives of the project include the establishment of a Europe-wide network of microfactories, increased employment opportunities, a higher share of sustainable materials in textile production, reduced waste and strengthened regional economies.

By fostering collaboration among industry, policymakers, customers, and researchers, ALADIN aims to serve as a “model” for similar initiatives, potentially amplifying the environmental and economic benefits across the sector.