Renewcell, a Swedish startup that recycles textile waste into circular material feedstock, has partnered with Loftex, a manufacturer of a full range of towels, and SCRAP, a California-based company that collects and distributes reusable arts and crafts materials, to launch a pilot program to manufacture towels from Circulose for home and hospitality industries.

Through this partnership, SCRAP will collect end-of-life 100% cotton towels from hotel chains in New York and Washington and send them to Renewcell. Using Renewcell's recycling technology, the towels will be converted into Circulose, which will then be used by Loftex to produce towels with a minimum of 15% recycled content.

Analyst QuickTake: Renewcell continues to expand the market presence of its 100% recycled textile material, Circulose. Following successful partnerships within the textile industry, such as China Textile Academy Green Fibre , HeiQ , Daiwabo, and luxury brand Ganni, where Circulose has been supplied to support sustainability initiatives, Renewcell is now introducing Circulose to the hospitality industry.