H&M Group has signed a multi-year agreement to source significant volumes of Circulose for its collections.
The move follows the innovative material brand’s rebirth after it collapsed into administration last year under the name Renewcell, which H&M had previously invested in.
Using Circulose in garments will help H&M’s brands replace a substantial share of the virgin viscose used across the group. The fashion retail conglomerate acknowledged one of the biggest barriers for its industry when looking to shift towards a more circular model, is the lack of alternatives and technologies at scale to replace virgin fibres.
It noted that agreements such as the one signed with Circulose represent a shift in making this a reality and help fashion brands increase the use of textile-to-textile recycled fibres. European competitor Mango announced earlier this month that it was the first to secure a sourcing deal with Circulose, in its new guise.
Jonatan Janmark, CEO of Circulose, commented: “H&M Group has been a driving force in advancing sustainable and circular solutions in fashion, and a long-time supporter and early adopter of Circulose dating back to the Renewcell days.
“We’re proud and grateful to now formalise this new partnership to accelerate Circulose adoption at scale. Their commitment plays a critical role in helping us reaching the volumes needed to restart our factory.”
Cecilia Strömblad Brännsten, H&M Group’s head of resource use & circularity, added: “We were pioneers back in 2020 when we first brought fashion made from Circulose to our customers.
“Today, we’re excited to deepen this partnership. Investing in next-generation materials is essential to achieving our goal: ensuring that 100% of our materials are recycled or sustainably sourced by 2030.”
She continued: “Scaling access to these solutions is key to accelerating the shift towards a circular economy for fashion.”
Circulose has a new commercial strategy under the ownership of investment firm Altor, which acquired assets of the collapsed Renewcell business for an undisclosed fee in June 2024 and renamed the organisation after its hero product.
The focus is on brand partnerships, using a new pricing model, and offering expanded support services. The new pricing model was developed in collaboration with not-for-profits Fashion for Good and Canopy, and requires brands to license Circulose to access the fibre.
Janmark and his team hope the new structure will reduce pricing friction and drive adoption at scale, shifting from limited capsule collections to large-scale adoption of next-generation materials. The license also includes services that support large-scale implementation, such as transition planning, supply chain orchestration, and traceability.
[image credit: H&M Group]
