In a landmark development for the man-made cellulosic fiber (MMCF) sector, Swedish textile recycler formerly known as Renewcell - Circulose has entered a strategic commercial agreement with China Textile Academy Green Fibre (CTA). This partnership, announced in April 2026, aims to bridge the long-standing gap between experimental recycled content and industrial-scale lyocell production. While recycled feedstock has historically integrated more easily into viscose processes, lyocell’s sensitive solvent-based spinning environment requires higher pulp purity and consistent performance. By successfully validating ‘Circulose’ pulp on CTA’s commercial lines, the collaboration confirms, textile-to-textile circularity is now technically viable for high-performance, non-fibrillating lyocell grades.

Strategic offtake and the 2027 capacity roadmap

The agreement moves beyond technical testing to provide the market with much-needed supply-chain predictability. CTA has committed to multi-year offtake volumes of Circulose pulp, a move that stabilizes the primary recycler's revenue stream as it restarts its Ortviken plant in late 2026. While commercial availability remains restricted to select early-adopter brands through the remainder of this year, the partners have outlined a robust scaling phase for 2027. This phased rollout is designed to mitigate the ‘feedstock gap’ that has previously hindered the circular economy. CTA’s ability to produce lyocell from Circulose is a testament to the performance of our pulp, states Jonatan Janmark, CEO, Circulose. The move offers a data-backed pathway for global retailers to meet 2030 recycled content mandates without compromising the strength or tactile quality of premium apparel.

Next-generation fiber collaboration

Owned by private equity firm Altor, Circulose operates the world’s first commercial-scale chemical textile recycling plant in Sweden, converting cotton waste into high-grade dissolving pulp. China Textile Academy (CTA) Green Fiber is a leading industrial research platform specializing in advanced lyocell technology. Together, they target the premium performance apparel and sustainable fashion markets, with plans to expand global recycled lyocell capacity by 2027.