The collaboration will see a multi-phase site established within Huafon's industrial footprint, using Circ’s proprietary technology to process polycotton textile waste and recover valuable raw materials for new textile products.
The first phase of the facility is expected to handle around 200 metric tonnes of textile waste per day, with further increases in capacity anticipated as part of the long-term development strategy.
According to Circ, the process will recover recycled purified terephthalic acid (PTA), recycled monoethylene glycol (MEG), and recycled cellulosic pulp, creating a closed-loop system for textile manufacturing.
Both Circ and Huafon, alongside selected investors, are providing capital for the project. Huafon’s expertise in chemical production, engineering, procurement, and logistics will be leveraged to accelerate the facility’s construction and deployment.
Circ CEO Peter Majeranowski said: “China is at the centre of global textile production, making it a critical location for scaling textile-to-textile recycling. Huafon brings the industrial capabilities, experience, and investment to move quickly and build a platform that can scale well beyond this first site.”
Circ contributes its connections with global brands and downstream customers interested in integrating recycled materials into their product lines, while Huafon provides the infrastructure and manufacturing knowledge necessary for industrial-scale production.
Huafon has over 30 years of experience in materials manufacturing and cemented its position in the global market through recent acquisitions, including the former DuPont Biomaterials business, now known as Covation Biomaterials.
These international holdings give Huafon a network of operations and customer relationships extending beyond China.
The project also aligns closely with priorities set out in China’s 15th Five-Year Plan, which advocates for the development of a circular economy through stronger waste management systems, increased recycling of high-quality materials, and lower-carbon industrial activity.
In the coming phases, Circ and Huafon intend to engage with brands, supply-chain partners, and downstream buyers, with ambitions to expand capacity and commercial opportunities further.
Feifeng You, the vice president of Huafon and chairman of Huafon Microfibre Shanghai Tech Co., added: "Circ has developed one of the most promising textile-to-textile recycling technologies we have seen, and Huafon is ready to help bring it to market. By combining Circ's innovation with our industrial strength and investment, we can turn textile waste into high-quality materials at a scale the industry needs."
