The European Union plans to set up a major textile recycling facility in Sillamäe, Estonia. Set to become the largest in the Baltic region, the facility will be developed by three interconnected companies with an investment of €100 million. Of this, €39 million will be provided by the EU's Just Transition Fund through Estonia’s Enterprise and Innovation Foundation.
The three companies will create a closed-loop system where each of their output will be fed into the next stage of the recycling process. The facility will process up to 70,000 tons of textile waste annually, with materials sourced from Estonia and neighboring countries.
The recycling process will begin with sorting incoming textile waste. Higher-quality materials will be earmarked for reuse, while lower-quality synthetic fibers will be blended with recycled plastic to manufacture construction boards. This innovative material will be made from a combination of textile waste fibers, recycled plastic, and additives.
Once operational in late 2026, the facility is expected to employ 150 people. The three factories will span approximately 1.5 hectare, and preliminary agreements have already been signed for both domestic and international product distribution.
The project aligns with broader EU initiatives to support regions facing socio-economic challenges in transitioning to climate neutrality. Estonia has designated Ida-Viru County, one of its economically disadvantaged regions, as the recipient of these resources.
