Renewcell

Renewcell is a Swedish startup that uses a patented process to upcycle cellulosic textile waste into a new material called Circulose, which is a dissolving pulp product. The pulp ​​is used to make viscose, lyocell, and other types of “man-made cellulosic fibers,” which generally use wood pulp as raw material. The manufacturing process is stated to use 99% less water than conventional cotton yarns. Renewcell began trading on Nasdaq in 2020.

As of March 2024, the company operates a plant at Sundsvall (Renewcell 1), with a production capacity of up to 60,000 metric tons of its “Circulose” recycled textile per year, with plans to double the capacity to 120,000 metric tons at a later stage.

In February 2024, Renewcell announced plans to file for bankruptcy following an inability to secure adequate financing to complete its strategic review, which began in November 2023. In June 2024, ​​Swedish private equity firm Altor acquired the company’s remaining assets. The company will continue operations under the "Circulose" moniker, which is the name of its dissolving pulp product.

Key customers and partnerships

• In June 2022, Renewcell partnered with HeiQ AeoniQ and the Danish luxury brand Ganni to use 15% Circulose in yarn production and a new pant collection respectively.

• In March 2022, Renewcell also partnered with Daiwabo to supply textile fibers made using Circulose to global fashion brands.

• In March 2023, the company signed a letter of intent with China Textile Academy (CTA) Green Fibre, to supply lyocell textile fibers made using Circulose to global fashion brands.

• Later in May 2023, the company partnered with TextileGenesis to trace Renewcell's Circulose throughout the entire textile supply chain.

• In August 2023, the company partnered with Loftex, and SCRAP, to launch a pilot program to manufacture towels from Circulose with a minimum of 15% recycled content.

• In July 2023, the company launched the Circulose Supplier Network with 47 manufacturers in Europe, Asia, and North America, expanding to 116 producers, including Vietnam, Taiwan, and the Czech Republic in October 2023.

• In September 2023, Renewcell partnered with Spinnova to commercialize textile waste-based fiber.

• In September 2023, the company partnered with Yibin Grace to integrate Circulose into recycled textiles, and in October 2023, the two companies launched a denim collection with Advance Denim.

• In October 2023, Renewcell partnered with Arvind to produce denim using the former's Circulose pulp.

• In October 2023, the company also entered into a supply agreement of 2,000 tons of Renewcell's Circulose fiber for Inditex.

Funding and financials

In December 2023, Renewcell secured loans totaling SEK 100 million (~USD 11.4 million) provided by two of its major shareholders, H&M Fashion and Girincubator, and existing lenders. Renewcell planned to use the funding to manage its liquidity requirements over the coming months while seeking long-term financing.

The company generated ~SEK 12.6 million (~USD 2,800) in net sales and ~SEK 252.0 (~USD 120,700) in operating losses before depreciation and amortization (EBITDA) during 2022.