Circ, a textile recycling innovator and partner of environmental non-profit Canopy, has secured €450 million ($500 million) in funding from the French government and the European Union to establish the world’s first commercial-scale polycotton recycling facility. The plant will be built in Saint-Avold, north-eastern France, and is scheduled to begin operations in 2028.
The facility will process up to 70,000 metric tonnes of textile waste annually and create 200 jobs. It will specialise in recycling blended fabrics—specifically polycotton, a dominant contributor to global textile waste. Using proprietary hydrothermal technology, Circ separates polyester from cotton without degrading either fibre. This process enables both materials to be reclaimed and converted into high-quality recycled cellulose and polyethylene terephthalate (PET), which can be used in new textiles.
Polycotton blends have long posed a recycling challenge due to their mixed-fibre composition. Circ’s technology overcomes this barrier, allowing waste to be transformed into virgin-equivalent fibres. This development reduces the fashion industry’s dependency on forest-sourced fibres like viscose and rayon—produced from more than 300 million trees annually—and curbs reliance on fossil fuel-derived polyester, significantly cutting carbon emissions.
Canopy founder Nicole Rycroft described the project as “a game-changer”, signalling a critical shift from the fashion industry’s extractive linear model to a circular, low-carbon economy. “It proves that sustainable fashion isn’t a distant goal—it’s already happening,” she added.
Circ CEO Peter Majeranowski confirmed that the project will be financed through a mix of equity, debt, and public funding, including France’s Strategic Projects Guarantee. He highlighted strong international interest, particularly from South Asia, North America, and Australia, positioning the Saint-Avold plant as a prototype for global expansion.
The fashion sector is responsible for up to 10% of global greenhouse gas emissions—more than aviation and shipping combined—and is a leading contributor to water pollution. As major retailers such as Inditex and Patagonia back Circ’s technology and integrate its fibres into their supply chains, the project marks a pivotal moment in the industry’s transition towards sustainability, fuelled by mounting regulatory and consumer pressures.
Engineering firms Worley, GEA, and Andritz have been named key partners in constructing the facility, which is designed to serve as a replicable model to support international climate targets.
