Swedish technology company Cyclothe is developing an integrated system to collect, identify and sort discarded textiles, aiming to address infrastructure gaps in Europe’s circular textile economy. The system combines smart collection points, automated material identification, AI-supported sorting and digital traceability to direct used textiles towards suitable reuse, repair, resale or recycling pathways.

The company aims to connect consumers, retailers, municipalities, logistics providers and recycling businesses through a shared physical and digital network. The initiative comes as Europe’s separate textile collection requirements, introduced at the beginning of 2025, increase the need for systems capable of handling growing volumes of discarded clothing and textiles. However, collection, sorting and recovery infrastructure remains fragmented.

The introduction of extended producer responsibility (EPR) requirements is also expected to increase pressure on brands and retailers to participate in more effective textile recovery systems. Cyclothe’s approach prioritises reuse, repair and resale before directing materials that cannot be recovered through these routes to recycling operations.

To support its expansion across the Nordic countries and wider Europe, Cyclothe has appointed Calvin Woolley as co-founder and CEO. Cyclothe founder Halit Kosmaz said the appointment marks a shift from developing the company’s proprietary technology towards commercial deployment.