visimoney
TLDR:
Key Points:
- Renewcell, a leading textile-to-textile recycling technology, filed for bankruptcy.
- The financial struggles were due to a lack of orders from brands, highlighting the need for a viable business case.
Article Summary:
In a recent outcry for answers, Renewcell’s bankruptcy raised questions about the viability of advanced textile recycling technologies in the global market. While the science behind the technology is solid, the financial challenges indicate a need for a sustainable business model. The reliance on brands to order recycled materials like ‘Circulose’ fibers created a disconnect in the textile industry supply chain. The lack of orders suggests a missing business case for brands to prioritize sustainable sourcing over cost efficiency.
Renewcell’s struggles shed light on the importance of integrating recycling technologies into the textile supply chain in manufacturing hubs like Asia. With the majority of textiles produced in Asian countries, the potential for circularity lies in aligning business interests with environmental imperatives. The focus should be on developing a profitable model that incentivizes brands and manufacturers to adopt sustainable practices.
The next phase for textile-to-textile recycling may involve collaboration with experts in countries like India and Bangladesh, where established supply chains can evaluate the feasibility of integrating advanced recycling technologies. By evaluating demand, volumes, technical feasibility, and projected revenues within existing textile economies, a successful circular textiles economy can be achieved.
