Circulose is teaming with Spinnova again for another crack at commercial success.
The Swedish textile recycler and the Finnish material innovator worked together to turn castoff clothing into new fibers back when Circulose was known as Renewcell and under its pre-bankruptcy management. Now, after a stretch of false starts and major hurdles—including broken partnerships that plunged both companies into strategic overhauls—the two are ready for their second act together, with Circulose joining Spinnova’s growing consortium to scale up its cellulosic pulp-to-fiber technology.
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The idea, they said, is to use Circulose’s cellulose-rich dissolving pulp as feedstock in Spinnova’s ecosystem to produce new textile fibers. Spinnova’s mechanical technology, unlike the chemical regeneration methods used for conventional man-made cellulosic fibers, allows its mill partners to turn Circulose into a new bio-based textile fiber without toxic chemicals or the need to dissolve the material during spinning. Circulose pulp, they added, can run at 100 percent in Spinnova’s process, cutting out the need for virgin pulp and boosting the recycled content in the final fiber.
Circulose and Spinnova said their 2023 trials, which spun Circulose pulp into fiber for yarn and fabric, already proved the two technologies mesh well. This new collaboration will integrate the pulp more deeply into Spinnova’s process while expanding options for other ecosystem collaborators—such as Portuguese yarn spinner Tearfil Textile Yarns and American fashion label Tommy Hilfiger—potentially pulling it to market in a bigger, more sustained way.
“We strongly believe that innovation will enable man-made cellulosic fibers to play a bigger role in textiles than it does today,” Circulose CEO Jonatan Janmark said in a statement about the renewed tie-up. “Spinnova is a great example of this; it is not only a sustainably produced fiber but also offers attractive performance properties.”
Circulose pre- and post-consumer waste-based pulp works for regenerated fibers like viscose, lyocell and viscose filament. Spinnova CEO Janne Poranen said its technology delivers a cotton-like hand without viscose’s shiny appearance.
“As demand for high-quality textile waste-based materials grows, this partnership allows Spinnova to secure valuable circular raw materials while supporting Circulose in expanding the use of its pulp into new, lower-impact fibers,” he said in a statement. “Together, their textile waste‑based pulp and our patented process enable a unique circular solution and bring innovative fiber production closer to commercial scale.”
Lofty ambitions aside, reality often bites harder. Spinnova weathered a bruising 2025, with revenue plummeting 54 percent to 344,000 euros ($399,500) after it tore through 41.3 million euros (nearly $48 million), or more than double the previous year’s 18.3 million euros ($21.3 million). An 18.4 million-euro ($21.4 million) “impairment” loss on Spinnova’s share of its terminated Woodspin joint venture with Finnish pulp manufacturer Suzano dealt an especially crushing blow.
“The year 2025 was significant for Spinnova and had an impact on our choices both strategically and operationally,” Poranen said when earnings were announced last month. “We updated our strategy to reflect the changes in the market environment and focused especially on improving the cost-efficiency of our production process, expanding the raw material base, developing the properties of the fiber, and building an international business consortium.”
Circulose is at a delicate stage, too, though a new partnership model, complete with license fees, promises a steadier revenue. The company revealed in February a fourth-quarter restart of full-scale production at its Ortviken plant in Sundsvall after securing volume commitments from brands such as Bestseller, C&A, Filippa K, John Lewis and Reformation under new ownership by private equity firm Altor. It was a dearth of appetite from big retailers, including Renewcell’s then-largest stakeholder, H&M Group, that doomed its previous go-around. Demand for next-gen innovations, while steadily rising in anticipation of European Union ecodesign rules, remains touch-and-go.
Still, Janmark believes Circulose can get it right this time. The company has inked strategic partnerships with fiber producers such as Aditya Birla, Tangshan Sanyou and Jilin Chemicals to create the infrastructure it needs. And the fashion industry needs solutions that can merge seamlessly with existing supply chains—which Circulose says it can provide.
“The preparations are in full swing, and new pulp is expected to roll out of the factory by the end of the year, ensuring there is no gap in supply,” Janmark said in the announcement. “Our plan was to align the production restart with confirmed demand, and with commitments from 11 brands, we are now moving forward with confidence.”
