Coloreel receives financing from Nefco for global expansion

Coloreel is a one-of-a-kind partner for sustainable apparel firms because of its on-demand thread coloring and 100% recycled materials.

Coloreel Group AB has signed a credit arrangement with Nefco, the Nordic Green Bank, to assist its growth and expansion in worldwide markets. Coloreel’s technique will have a favorable environmental impact on the textile sector by reducing thread waste, chemical use, and wastewater.

All currently available embroidery machines rely on distinct pre-colored spools of thread for each color required in the embroidery process. Coloreel’s patented method tackles this issue by employing a single recycled polyester thread as input, removing the need for pre-colored threads, which are a major source of wastewater pollution. Coloreel’s on-demand embroidery solution will help decrease the quantity of thread lost throughout the embroidered process.

Fredrik Larsson, Investment Adviser, Nefco, said that they’re excited to provide this financing for Coloreel because the company has the potential to make embroidery and clothing production far more sustainable than they are today and enable a significant step towards circularity in the textile industry.

Coloreel’s innovation was motivated by the textile industry’s significant environmental impact and the challenges posed by traditional thread handling methods, which require hundreds of thread reels to be stocked while still not ensuring the right colors are available to complete subsequent production orders. Coloreel, based in Jönköping, southern Sweden, is particularly interested in expanding into worldwide markets.

Torbjörn Bäck, CEO, Coloreel, said that the Nefco funding will go a long way toward assisting their international expansion. It is also a great recognition of the environmental benefits they can provide the textile sector.

Coloreel gives the artistic versatility of digital print, including endless colors and effects, while producing excellent embroidery using 100 percent recycled polyester threads.

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