Circulose

About Circulose

Re:newcell AB was a Swedish sustaintech company founded in 2012 as a spin-out from the KTH Royal Institute of Technology in Stockholm by professors Mikael Lindström, Gunnar Henriksson, and innovator Malcolm Norlin. The company developed a patented process to recycle cellulosic textile waste, such as used cotton and viscose garments, into a new, biodegradable raw material called CIRCULOSE®. This dissolving pulp was sold to fiber producers to be turned into man-made cellulosic fibers (MMCFs) like viscose and lyocell, which are then used to create new fabrics and garments, offering an alternative to virgin materials like cotton or wood.

The company's business model involved receiving textile waste, shredding it, removing contaminants like zippers and buttons, de-coloring it, and turning it into a slurry. This slurry was dried into sheets of CIRCULOSE® pulp, which were then sold back into the textile value chain. Re:newcell aimed to make the fashion industry circular by partnering with major brands like H&M, Levi's, PVH, and Zara, who used Circulose® in their collections. H&M Group was a significant partner and investor, signing a multi-year agreement in 2020 to scale up the use of the material.

Re:newcell operated a demonstration plant in Kristinehamn, which opened in 2018, and began construction on its first commercial-scale factory, Renewcell 1, in Sundsvall, Sweden, in 2021. The company went public on the Nasdaq First North Premier Growth Market in November 2020 to finance this expansion. Despite raising significant capital and securing partnerships, the company faced financial difficulties due to a slower-than-expected ramp-up of sales and an inability to secure sufficient long-term financing. On February 25, 2024, the Board of Directors decided to file for bankruptcy. Following the bankruptcy, private equity firm Altor acquired the company's assets and plans to relaunch the business under the name Circulose.