H&M Group has signed a multi-year deal to replace virgin cotton and wood-based fibres with Circulose, a material made from recycled textiles by Swedish company Renewcell.

Under the agreement, Renewcell will supply H&M Group with Circulose fibers recycled from unusable textile waste at its new recycling plant in Sundsvall, Sweden, ramping up the annual volume over a period of five years. Subject to closing of the ongoing financing for the project, Renewcell plans to start building the new plant in 2021 and make first deliveries starting in the first half of 2022.

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