Sri Lankan manufacturing giant MAS Holdings has committed to purchase 4,000 tons of recycled polyester from LA-based start-up Ambercycle over the next three years. This deal highlights the increasing engagement by suppliers in promoting recycling innovations in the market.
The agreement aims to support Ambercycle's expansion of textile-to-textile recycling capabilities besides ensuring a steady supply of the material for MAS. The process is viewed as a more environmentally sustainable alternative to recycling polyester from repurposed plastic bottles.
However, still in early stages, commercialising of such technologies faces many challenges. For example, Swedish textile-to-textile recycler Renewcell had to be recently saved from financial breakdown by private equity firm Altor.
To bring new materials to market, binding purchase commitments, such as the one between MAS and Ambercycle, are considered vital. It is also important for manufacturers to pledge their involvement in such initiatives. While big brands like H&M Group and Zara-owner Inditex have already announced investments in innovative fibers, suppliers are yet to make such commitments.
Hence, MAS views its deal with Ambercycle as strategic, aligning with the growing demand for recycled materials from its customers and its own goal to generate 50 per cent of its revenue from lower-impact.
