Circular Systems

Circular Systems converts textile waste into fiber, yarn, and fabric through its textile-recycling platform, known as “Texloop.” Texloop recycles pre-consumer cotton textile waste and converts it into recycled cotton (RCOT) fiber, which is stated to have near-virgin fiber quality. The company's patent-pending hybrid-spinning technology, Orbital, provides RCOT fibers that can be used in conventional spinning systems to create high-quality fashion products.

The company uses a “lightest touch”-processing technique that preserves the natural fiber quality for the next generation of recycled materials. Its RCOT is claimed to use up to 99% less water, 54% less energy, and 20% less carbon than conventional cotton. As of March 2024, more than 700,000 kg of Texloop RCOT has been shipped, reducing more than 513,000 kg of CO2 emissions and saving ~8.9 million kWh of energy. 

Key customers and partnerships

In December 2021, the company signed a global-licensing agreement with Nishat Mills to increase the production capacity of Texloop RCOT Primo and meet bulk orders for customers around the world. In April 2022, Circular Systems also partnered with H&M to showcase the “Cherish Waste” collection line, featuring Circular Systems' Texloop RCOT Primo. The company's other RCOT yarn and fabric customers include Nike, Tintex, Converse, and influential fashion brands Arket (part of the H&M Group), Girlfriend Collective, and Madewell. 

Circular Systems is also working on improving its technology. In March 2023, the company partnered with FibreTrace to bring physical traceability technology to Texloop RCOT on a global scale.

Funding and financials

In February 2021, the company raised USD 7.4 million in equity funding to expand its operations and accelerate product development.