Circ and Huafon will build a multi-phase textile-to-textile recycling plant in China, with Phase 1 designed to process roughly 200 metric tons of polycotton textile waste per day. Huafon, one of the world's largest spandex producers, is investing directly in the project alongside Circ and other selected investors. The companies announced the partnership on 8 October 2026, from Circ's base in Danville, Virginia.

The site will sit within Huafon's existing industrial footprint and run Circ's technology to separate and recover both components of polycotton waste. Outputs will include recycled PTA, recycled MEG and recycled cellulosic pulp, all destined for new textiles rather than downcycled applications.

For suppliers and brands, the deal pairs two halves of the scale problem. Circ brings the recycling process plus an established network of global brands, textile manufacturing partners and downstream customers. Huafon contributes engineering, procurement, logistics and commercial muscle, plus a home-market position in the country that anchors global textile production.

"China is at the center of global textile production, making it a critical location for scaling textile-to-textile recycling," said Peter Majeranowski, CEO of Circ. "Huafon brings the industrial capabilities, experience, and investment to move quickly and build a platform that can scale well beyond this first site."

Who is Huafon and what does it bring?

Huafon counts more than 30 years in materials technology, innovation and chemical manufacturing, and ranks among China's leading chemical and advanced materials groups. Its global reach extends beyond China: the company acquired DuPont's former Biomaterials business, now Covation Biomaterials, giving it operating sites in Newark, Delaware, and Kinston, North Carolina, plus international customers and commercial relationships.

Feifeng You, Vice President of Huafon Group and Chairman of Huafon Microfibre Shanghai Tech Co. Ltd, framed the deal in supply terms: "Circ has developed one of the most promising textile-to-textile recycling technologies we have seen, and Huafon is ready to help bring it to market. By combining Circ's innovation with our industrial strength and investment, we can turn textile waste into high-quality materials at a scale the industry needs."

How does the project fit China's policy direction?

The partnership tracks Beijing's stated industrial priorities rather than working against them. Alignment points include:

• The 15th Five-Year Plan's emphasis on circular-economy development and stronger waste recovery and reuse systems
• Policy support for greater use of high-quality recycled materials, green manufacturing and lower-carbon production
• China's materials strategy prioritising advanced polymers, high-performance fibres and bio-based materials

That regulatory tailwind matters for buyers weighing recycled-content claims, since it signals the feedstock and capacity base for textile-to-textile materials in China is a state-supported build-out, not a niche experiment.

What comes after Phase 1?

Additional capacity beyond the initial 200 tonnes per day is already planned, though the companies did not disclose a timeline or total investment figure. As capacity develops, Circ and Huafon will engage brands, supply-chain partners and downstream buyers. The stated ambition covers further phases, downstream commercial activity and a long-term circular textile production platform serving both Chinese and global markets.

The announcement names no committed brand offtakers yet; the buyer network Circ cites is prospective until supply contracts emerge. Sourcing teams evaluating recycled polycotton inputs should treat this as a capacity announcement, not yet a bookable supply agreement, and watch Phase 1 commissioning dates and offtake signings as the signals that convert policy-aligned ambition into procurable volume.