Circulose reopens Sundsvall factory following strategic restructuring

Swedish textile innovator Circulose has announced the restart of its commercial-scale production plant in Ortviken, Sundsvall. The facility, which is the world’s first industrial-scale chemical textile recycling plant, is scheduled to resume the manufacture of its signature recycled pulp in the fourth quarter of 2026.

The restart follows a period of financial restructuring that saw the company, formerly known as Renewcell, acquired by the Swedish private equity firm Altor in June 2024. Under the new ownership and rebranding to Circulose, the company has undergone a significant leadership transition and a fundamental shift in its commercial strategy.

Move toward partner-led supply chains

A central pillar of the company’s resurgence is the abandonment of open-market sales in favor of a partner-led model. Jonatan Janmark, the chief executive officer of Circulose, stated that the restart is predicated on securing direct volume commitments from fashion brands rather than relying on spot-market demand.

To date, the company has secured commitments from 11 global fashion brands. In December 2025, a wave of new partnerships was announced, including Bestseller, John Lewis, C&A, Filippa K, Reformation, Faherty, Bobo Choses, and Zero. These labels join existing collaborators such as H&M Group, Mango, and Marks & Spencer.

“Our plan was to align the production restart with confirmed demand,” said Janmark. He noted that the new go-to-market strategy focuses on building deeper partnerships that drive stable volume and ensure improved traceability for recycled pulp.

Scaling to 60,000 tonnes of recycled pulp

The Ortviken plant aims to reach an annual production capacity of 60,000 tonnes of Circulose, a dissolving pulp made entirely from discarded cotton textiles. This raw material is used by fiber producers to create man-made cellulosic fibers (MMCF), such as viscose and lyocell, which are then integrated into mainstream apparel supply chains.

To support this industrial scaling, Circulose has signed strategic cooperation agreements with major fiber producers, including Tangshan Sanyou, Aditya Birla, and Jilin Chemicals. These partnerships ensure that the recycled pulp is converted into high-quality fiber and made readily available to the global textile market.

The company’s reboot is being guided by an experienced executive board. Janmark, a former partner at McKinsey & Company, assumed the role of CEO in late 2024. He is supported by Helena Helmersson, the former CEO of H&M Group, who serves as the chairman of the board.

This article was translated to English using an AI tool.

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