The Swedish textile-to-textile recycling solutions provider Renewcell has signed a Letter of Intent with Birla Cellulose concerning a long-term commercial collaboration for the production of man-made cellulosic fibre. Birla Cellulose, part of Aditya Birla Group, is the pulp and fibre business of Grasim Industries Ltd., one of the world’s largest manufacturers of man-made cellulosic fibres. The agreement affirms the two companies’ intent to work together to supply high-quality Liva Reviva textile fibres made using Circulose®, Renewcell’s 100% recycled textile raw material, to global fashion brands and the textile industry in the coming years. The ambition of the agreement, facilitated by Ekman Group, Renewcell’s exclusive global trading partner, is to use 30 thousand tonnes of Circulose® per year.
The Letter of Intent signed between Renewcell, and Grasim Industries Limited provides the framework for an upcoming offtake agreement between the parties. The future offtake agreement will set out commercial terms for the delivery of certain volumes of Circulose® dissolving pulp to Birla Cellulose over a number of years. Birla Cellulose intends to use Circulose® as one of the feedstocks in the production of man-made cellulosic fibres under the brand Liva Reviva, to be supplied to textile manufacturers and fashion brands worldwide.
Renewcell also announced that it has signed a Letter of Intent for long-term commercial cooperation with Japan-based cellulosic fibre manufacturer Daiwabo Rayon Co Ltd, for the production of man-made cellulosic fibre.
Renewcell and Birla Cellulose will work together to reduce fashion’s environmental impact
Renewcell CEO Patrik Lundström said that Renewcell and Birla Cellulose have collaborated almost since the founding of the company and that they have benefited from their technical expertise and customer feedback throughout the development and ongoing commercialization of Circulose®. Lundström continued his words as follows; “With recent trial successes, growing fashion brand demand, and the upcoming commissioning of our new commercial-scale recycling plant in Sundsvall, Sweden — the time is now right to proceed to large-scale commercial collaboration. Together with Birla Cellulose, a world-leading viscose manufacturer, we will work to make fashion circular and reduce its negative impact on climate and the environment”.
Grasim Industries Limited Managing Director H K Agrawal disclosed that they are excited to extend their partnership with Renewcell for expansion of its circular fibre offering – Liva Reviva and said; “Liva Reviva is a testimony to our commitment to circularity and sustainability, It is the pioneer commercial-scale viscose fibre offering, containing recycled feedstock”. Agrawal expressed that they are looking forward to collaborating with innovators with an aim to scale up the circular fibers production to 100 thousand tons per annum by 2024. He stated that they expect this partnership with Renewcell to play an important role in providing high-quality Liva Reviva to their customers.