Circ® and Huafon will build a multi-phase textile-to-textile recycling site in China, with Phase 1 designed to process approximately 200 metric tons of textile waste per day. The companies announced the partnership on October 8, 2026, from Circ's headquarters in Danville, Virginia.

The facility will sit within Huafon's existing industrial footprint and run Circ's polycotton recycling technology. It will process polycotton textile waste and recover both inputs as recycled PTA, recycled MEG and recycled cellulosic pulp for use in new textiles. Additional capacity beyond Phase 1 is planned but not yet specified.

For sourcing teams, the deal matters because it pairs a recycling process technology with an established Chinese chemical manufacturer that can execute engineering, procurement and logistics at industrial scale. Huafon is also investing directly in the project alongside Circ and other selected investors — the partner is co-funding the deployment, not just licensing the technology.

Circ brings the demand side. The company counts a network of global brands, textile manufacturing partners and downstream customers ready to adopt the recovered materials, which shortens the path from startup capacity to commercial offtake.

"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?

Huafon is one of China's leading chemical and advanced materials companies and one of the world's largest spandex producers, with more than 30 years of experience in materials technology, innovation and chemical manufacturing. The group has already demonstrated overseas expansion in advanced and sustainable materials: it acquired DuPont's former Biomaterials business, now Covation Biomaterials, giving it operating sites in Newark, Delaware, and Kinston, North Carolina, plus commercial relationships outside China.

"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."

How does the project align with Chinese policy?

The timing is not incidental. China's 15th Five-Year Plan emphasizes circular-economy development, stronger waste recovery and reuse systems, greater use of high-quality recycled materials, green manufacturing and lower-carbon production. Beijing's broader materials strategy prioritizes advanced polymers, high-performance fibers and bio-based materials — overlapping directly with the recovered outputs this platform is designed to produce.

That policy alignment matters for brands weighing where recycled-content supply chains will be stable over the long term. A domestic Chinese circular-materials platform serving both the Chinese market and export customers could reduce reliance on smaller, geographically fragmented recycling capacity elsewhere.

What happens next?

The companies confirmed Phase 1 capacity of roughly 200 metric tons per day but did not disclose total investment, a commissioning date or the size of Huafon's equity stake. As capacity develops, Circ and Huafon will engage brands, supply-chain partners and downstream buyers.

The stated ambition extends beyond the first site: additional phases of capacity, downstream commercial activity and a long-term platform for circular textile production serving China and global markets. Those later phases remain announced intentions rather than confirmed builds. Brands and suppliers evaluating recycled PTA, MEG and cellulosic supply should track the commissioning timeline as the project moves from announcement to operating capacity.