Circ and Chinese polyurethane and spandex producer Huafon will co-develop a textile recycling site in China designed to process roughly 200 metric tons of blended textile waste per day in its first phase, the companies announced Thursday.

The facility will sit inside Huafon's existing industrial footprint. That gives Circ access to polyurethane, polyamide and spandex manufacturing know-how, plus logistics and engineering capacity. Huafon will invest alongside Circ and other backers, with additional processing capacity slated for later phases.

What will the site recover?

The plant separates cotton from polyester in blended waste streams. Hydrothermal processing yields cellulosic pulp for regenerated cellulosic fibers including lyocell and viscose, plus two polyester building blocks: purified terephthalic acid (PTA) and monoethylene glycol (MEG). Those outputs feed directly into existing polyester and cellulosic fiber supply chains.

Circ's model relies on sorting and shredding waste before hydrothermal breakdown. Recovered inputs are passed to fiber manufacturing partners that brands and mills already purchase from.

Why China, and who is paying?

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

Huafon's portfolio spans polyurethane, polyamide, spandex and related materials. The group bought DuPont's Biomaterials business in 2022, which now operates as Covation Biomaterials and produces Sorona polymer.

"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," said Feifeng You, vice president of Huafon Group and chairman of Huafon Microfibre Shanghai Tech Co. Ltd.

"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," You added.

For Circ, the agreement delivers an industrial partner with manufacturing infrastructure. The Danville, Va.-headquartered recycler contributes its technology and a buyer network already spanning apparel brands and mills.

Where does this sit in Circ's build-out?

The China site joins Circ's flagship industrial project in Saint-Avold, France. That plant targets 70,000 metric tons of textile waste annually. Construction is expected to begin soon, with full operations slated for 2029.

• China site first phase: ~200 metric tons per day
• Saint-Avold plant: 70,000 metric tons per year
• Both facilities targeted for full-scale commercial output by 2029

Which buyers have committed?

Two purchase commitments have landed in the run-up to the Huafon announcement:

• Shenghong Chemical Fiber New Material Co. Ltd. agreed on Aug. 25 to buy Circ's recycled polyester chips for filament yarn production.
• Primark announced a long-term deal on Sept. 28 to introduce Circ's polyester made from textile waste into its clothing from 2029. The retailer called it its first multi-year purchase agreement with a textile-to-textile recycler.

The combined commitments give Circ off-take across both its French and Chinese output channels.

Brands and mills sourcing from China can tap recycled polyester and cellulosic inputs through Huafon's downstream network and Shenghong's filament capacity. European buyers can plan around Saint-Avold's 2029 ramp.

What sourcing decision does this force?

Mills holding 2029 fiber commitments now need to confirm whether their polyester and cellulosic supply will originate from Saint-Avold, the China site, or a blend of both. Circ's geographic production split will set shipping routes, lead times and the compliance documentation tied to feedstock origin under textile waste regulations in each destination market.