Under this agreement, Sanyou will procure pulp from Circ's inaugural commercial-scale plant for five years with operations anticipated to begin in 2028.
Located in Saint-Avold, France, the $500m facility will be capable of recycling up to 70,000 metric tonnes (mt) of textile waste per year.
It will have the capability to process substantial quantities of mixed-fibre textiles, including common poly-cotton blends that represent a large fraction of global textile waste.
The joint effort between the two companies will lead to the manufacture of Lyocell staple fibres with 30% recycled content, thereby enhancing the availability and growth of recycled fibres within the industry.
Circ CEO Peter Majeranowski said: “As one of the leading global MMCF producers, Sanyou’s commitment to Circ demonstrates both the quality of our product and the future of the industry.
“Core to Circ — from our technology and products to our partnerships and business strategies — is creating forward momentum towards a truly circular economy in the global fashion industry, and strategic partnerships such as with Sanyou are crucial for the realisation of this goal.”
The partnership underscores the importance of collaborative efforts for effectively scaling textile recycling technologies, said Circ.
Sanyou's commitment also ensures that its clientele has access to Circ Lyocell amid increasing demand for sustainable products and as brands seek to diversify their supply chains.
Circ's Lyocell, created from textile waste through a closed-loop process, are designed to meet or surpass virgin, tree-based lyocell and is ready for direct integration into textile production.
Sanyou deputy general manager Zhang Dongbin said: “Both Sanyou and Circ are dedicated in their commitment to fostering sustainable practices that reduce the environmental impact of the fashion industry. This strategic partnership will establish new benchmarks in the textile industry thanks to our shared vision for a sustainable future and circular economy.”
Earlier this month, Circ announced its collaboration with European retailer Zalando to introduce the first items from Zalando’s private label Anna Field made with Circ Lyocell.
