Swedish textile-to-textile recycling innovator Renewcell has inked a deal with Japanese cellulosic fibre producer Daiwabo Rayon Co Ltd for a long-term commercial collaboration around man-made cellulosic fibre production.

The agreement between Renewcell and Daiwabo affirms the two companies’ intent to work together to supply textile fibres made using Circulose, Renewcell’s 100% recycled textile raw material, to global fashion brands in the coming years.

The Letter of Intent, which was facilitated by Ekman Group, Renewcell’s exclusive global trading partner, provides the framework for an upcoming offtake agreement between the parties. The future legally binding offtake agreement will set out commercial terms for the delivery of certain volumes of Circulose dissolving pulp to Daiwabo over a number of years.

Daiwabo intends to use Circulose as feedstock in the production of man-made cellulosic fibres to be supplied to textile manufacturers and fashion brands worldwide.

“Daiwabo is a true leader in viscose fibre production that has excellent long-standing relations with the biggest brands in Asia and the world. It reflects very well on the work done by our team to ensure the quality and maximise the potential of Circulose as a feedstock for circular textile fibres,” says Patrik Lundström, CEO of Renewcell.

Kazunari Fukushima, president of Daiwabo Rayon, adds: ”Our announcement of an agreement with Renewcell, the most advanced textile recycling innovator in the world, marks the first step in jointly producing our functional regenerated cellulose fibre and products using the recycled textile raw material Circulose.”

Last month, Harald Cavalli-Björkman, chief growth officer at Renewcell, spoke exclusively to Just Style about its move to boost Circulose production capacity at its Sundsvall plant ahead of plan.

Strong customer interest for Circulose prompted Renewcell’s decision to bring forward plans to expand its Renewcell 1 plant, in Ortviken from 60,000 to 120,000 metric tonnes of total annual capacity.