US-based textile recycling company Circ has formed a partnership with China’s Tangshan Sanyou Group’s Sanyou Chemical Fiber to improve access to recycled cellulosic fibres, especially Lyocell, within the Chinese market.

Circ and Sanyou plan to grow the availability of recycled fibres. As part of this agreement, Sanyou will buy pulp from Circ’s first large-scale plant for five years. The facility is expected to begin operations in 2028.

This $500 million plant will be built in Saint-Avold, France, and will have the capacity to recycle around 70,000 metric tonnes of textile waste every year. The plant will be able to handle a wide range of blended textiles, including poly-cotton fabrics, which make up a large portion of textile waste around the world.

Through this partnership, the companies will produce Lyocell staple fibre that contains 30% recycled material, helping increase the use and availability of eco-friendly fibres in the textile industry.

Circ’s CEO, Peter Majeranowski, stated that Sanyou’s support highlights both the quality of Circ’s recycled materials and the direction the textile industry is heading in. He added that the company’s goal is to help create a circular economy in fashion, and collaborations like this are key to reaching that vision.

Zhang Dongbin, deputy general manager of Sanyou, said both companies are deeply committed to promoting sustainable solutions that lower the fashion industry’s environmental harm. He added that this alliance will help set new industry standards, as both companies work together for a more eco-friendly and circular future.