H&M re-engages with recycled fiber specialist Circulose

Swedish group H&M announces the signing of a multi-year partnership with Circulose, a company specializing in the production of recycled textile fibers. A new chapter in the relationship between the two entities. Starting in 2020, the clothing retail giant was one of the first customers of this eco-responsible supplier, also Swedish, and was even one of its main investors. Before the entity, then called Renewcell, suffered a bankruptcy filing in early 2024 in the face of shareholder and lender reluctance.

Renewcell, which had been founded in 2012, was taken over last year by the Swedish investment fund Altor, and under its impetus, the company changed its name to Circulose, the name of the fiber it was already producing.

Since its relaunch, the company has signed new contracts with fashion brands. A few days ago, it signed an alliance with the Spanish chain Mango.

Now it’s time for a new collaboration with H&M, which intends to replace “a significant proportion of its man-made cellulose fibers (MMCF) with fibers made from Circulose”, says the group in a press release. This recycled material is made entirely from used textiles, in a circular system.

Circulose’s aim is to be truly widely adopted by global brands. “Their commitment plays a key role in helping us achieve the volumes we need to restart our factory (opened in 2022 in Sundsvall, Sweden, ed. note),” expressed Jonatan Janmark, Circulose’s managing director. He has launched a new business strategy to be viable, “focused on close collaboration with brands”, a new pricing model “based on licenses, developed in collaboration with Fashion for Good and Canopy, to reduce the friction associated with scaling up new-generation materials”.

In late 2024, the company welcomed former H&M Group CEO Helena Helmersson to its board of directors.

In the second quarter of its 2025 financial year, the H&M Group saw its sales fall by 5% to 56.7 billion crowns (5.14 billion euros), and its net profit drop by 22% to 3.96 billion crowns (around 360 million euros).