Unlock stock picks and a broker-level newsfeed that powers Wall Street. Upgrade Now
Birla Cellulose Inks 5-Year Deal with Circ to Scale Recycled Fiber

Textile-to-textile recycling startup Circ and Birla Cellulose inked a long-term strategic partnership to ramp up the textiles sector’s scaling of recycling fibers.

Per the terms of the deal, the India-based conglomerate Aditya Birla Group’s cellulosic fiber division will purchase up to 5,000 metric tons of Circ’s pulp per year for five years from the 2023 Earthshot Prize Finalist’s first commercial-scale facility. With 12 manmade cellulosic fiber (MMCF) manufacturing sites using closed-loop technologies and recycled materials, Birla Cellulose will convert Circ’s pulp into lyocell staple fiber to support the B Corp as it scales its commercial production.

More from Sourcing Journal

“Our partnership with Birla Cellulose, a leading global producer of MMCFs, is significant as it demonstrates both Circ’s ongoing process toward scalability as well as the industry’s commitment to investing in a truly circular economy,” said Peter Majeranowski, Circ’s CEO. “Together, we are poised to create a more sustainable fashion future by integrating recycled materials into textiles on the global stage.”

Thanks to Circ’s hydrothermal processing—a process that uses water, pressure and chemistry—the Pyratex partner can separate polycotton blended textile waste and recover both cellulose and PET fibers, which can then be turned into either lyocell or polyester fabrics. The partnership with Birla Cellulose will focus on Circ Lycocell, comprised of 50 percent recycled poly-cotton textile waste and 50 percent FSC-certified wood pulp. With the “appetite for recycled materials outpacing the current supply,” per the partners, the five-year deal demonstrates how supply chain collaboration can effectively scale recycling initiatives to meet this growing demand.

“This partnership reflects our deep commitment to environmental stewardship and represents a crucial step in advancing innovation within the textile industry,” said Dr. Aspi Patel, chief technology officer of Grasim Industries Limited. “By combining Circ’s cutting-edge recycling technology with our cellulosic fibers, we are significantly enhancing the potential for a truly circular economy.”