Renewcell collaborates with Daiwabo on circular textile fiber production

Swedish textile-to-textile recycling innovator, Renewcell has signed a Letter of Intent with Daiwabo Rayon Co. Ltd., a leading Japanese cellulosic fiber producer, to collaborate on man-made cellulosic fiber production for the long term.

The agreement confirms the two companies’ intention to collaborate in the coming years to offer global fashion brands with textile fibers derived from Circulose®, Renewcell’s 100 percent recycled textile raw material. Ekman Group, Renewcell’s exclusive global trading partner, handled the arrangement.

Patrik Lundström, CEO of Renewcell, said that he is excited to announce a partnership with such a prestigious company as Daiwabo. Daiwabo is a true leader in viscose fiber production, with good long-term relationships with Asia’s and the world’s most prestigious companies. It speaks well of their team’s efforts to ensure the quality and maximize the potential of Circulose® as a feedstock for circular textile fibers.

Mr. Fukushima, President of Daiwabo Rayon, said that the first step towards collaboratively creating their functional regenerated cellulose fiber and goods using the recycled textile raw material Circulose® is to announce an agreement with Renewcell, the world’s most sophisticated textile recycling pioneer. They’re really delighted about their relationship and feel the weight of their obligation to produce products that are kind to people and the environment.

The Letter of Intent signed by Renewcell and Daiwabo lays the groundwork for the parties’ impending offtake agreement. The future legally binding offtake agreement will spell out the commercial parameters for delivering specific volumes of Circulose® dissolving pulp to Daiwabo over a period of time. Circulose® will be used as a feedstock by Daiwabo in the manufacturing of man-made cellulosic fibers for textile producers and fashion brands all over the world.

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