Renewcell, a Swedish startup that recycles textile waste into circular material feedstock, has signed a letter of intent (LOI) with China Textile Academy (CTA) Green Fibre, a Chinese lyocell fiber producer, to supply lyocell textile fibers made using Renewcell’s Circulose to global fashion brands. 

The LOI provides the framework for an upcoming offtake agreement which would set out commercial terms for the delivery of 18,000 tons of Circulose to CTA Green Fibre over five years. The agreement has been facilitated by Ekman Group, Renewcell's exclusive global trading partner.

Analyst QuickTake: This partnership allows Renewcell to further collaborate with renowned fashion brands by leveraging its proprietary Circulose as a feedstock. Previously, the company partnered with Daiwabo (March 2022), HeiQ (June 2022), and Ganni (June 2022) to supply Circulose for their textile fibers, yarn, and pant collection, respectively.