Retailers like Hennes & Mauritz and Inditex are buying only "peanut quantities” of an innovative fiber made from recycled materials, in a blow to the drive for more sustainability, according to a textile recycling supplier to both fashion brands.
Sweden-based company Renewcell produces circulose, a pulp it has trademarked made from recycled cotton and used in creating clothing materials. Magnus Hakansson, interim CEO of the firm, has warned that retailers’ slow demand is putting a serious strain on its business, with shares battered after it abandoned its forecast to break even by year-end amid lower-than-expected sales.
Renewcell opened its first commercial recycling plant last year, with a capacity to produce 60,000 metric tons (66,000 tons) of pulp. However, the volume of orders it expected from the owner of Zara, H&M and other retailers hasn’t materialized.