The collaboration aims to achieve up to 100,000 tonnes of textile-recycled polyethene terephthalate (PET) spinning capacity per year.
Indorama Ventures said that this move will strengthen the “resilience and transparency” within the international textile supply chain, while also improving the value provided by both partners to the industry.
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The completion of the joint venture is contingent upon receiving the necessary regulatory approvals.
Indorama Ventures fibres business executive president Diego Boeri said: “Mismanaged textile waste, as well as the next generation’s expectations regarding climate protection, cannot be solved by one company alone. It requires significant investment in infrastructure, technology and operations. Only together, all value chain players can build circular business models.”
Indorama Ventures, a sustainable petrochemicals producer, has manufacturing presence across the Asia Pacific (APAC), Europe, the Middle East, Africa (EMEA) and the Americas.
Jiaren Chemical Recycling contributes its chemical recycling capabilities, including sourcing, sorting, decolourising, depolymerising, and repolymerising textile waste.
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By GlobalDataThese processes make it possible for chemical textile recycling to be implemented at a large scale.
The collaborative effort will also see Indorama Ventures provide a double-digit million-dollar equity investment in Jiaren Chemical Recycling’s recycling capacity.
“We consider Jiaren Chemical Recycling the most advanced technology player in chemical textile recycling today. This strategic partnership is our next significant contribution to making our ambition of a circular textile industry real,” Diego Boeri added.
Jiaren Chemical Recycling, a subsidiary of Zhong Jian Xin Group, currently operates with an annual capacity of 30,000 metric tonnes (mt).
The company has expanded by adding a second production base, increasing its potential output to 150,000mt of recycled polyester annually.
This expansion could facilitate the recycling of more than 240,000mt of used textiles each year and decrease reliance on virgin petrochemical resources.
Jiaren international market chief commercial officer Fang Jiayu said: “Already today, Jiaren Chemical Recycling is among the biggest PET textile chemical recyclers globally, and we are continuously expanding our capacity. Partnering with a global powerhouse like Indorama Ventures is an opportunity for us to expand reach, helping to solve the world’s textile waste crisis, and secure diverse stable supply chains for brand owners and customers worldwide.”
