Circ and Huafon Group plan a textile-to-textile recycling facility in China with an initial processing capacity of roughly 200 tons of textile waste per day — about 73,000 tons annually if the first phase runs continuously at full capacity.

The US recycling technology developer announced the partnership with the Wenzhou-headquartered chemicals and fibre manufacturer, which will also invest directly in the venture alongside Circ and other selected investors. The partners have not disclosed the facility's location, total investment cost, or a commissioning timetable for phase one.

The plant will be built in phases within Huafon's existing industrial infrastructure, combining Circ's technology for recovering both polyester and cellulose from blended fabrics with the Chinese group's manufacturing capabilities, engineering resources and supply chains. Further expansion beyond the first phase is planned, though no capacity figures for later stages have been released.

What does the deal change for Circ?

For Circ, the arrangement offers a route to industrial deployment without building independent production infrastructure, and it places the company's technology inside the world's largest textile manufacturing economy. The project adds a second major geographical focus to Circ's commercialisation push, alongside its first industrial-scale facility currently under development in France.

"China is at the centre 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."

Feifeng You, vice president of Huafon Group and chairman of Huafon Microfibre Shanghai Tech, said the partnership will bring recycled textile materials to market at scale.

Circ also brings its own commercial assets to the table: relationships with international fashion brands, textile manufacturers and downstream customers interested in incorporating recycled raw materials into their supply chains.

Who is Huafon?

Founded in 1991 and headquartered in Wenzhou, Zhejiang Province, Huafon employs more than 20,000 people worldwide and ranks among China's largest chemical and advanced materials manufacturers. It is a major global producer of spandex and polyurethane materials, operating across polyurethane, polyamide, bio-based materials and other industrial sectors.

Its international footprint includes the acquisition of DuPont's former Biomaterials business, now operating as Covation Biomaterials, with manufacturing operations in the USA.

An open question on downstream integration

One unresolved issue sits at the centre of the deal: whether Huafon has the downstream capability to convert Circ's recovered outputs — purified terephthalic acid (PTA), monoethylene glycol (MEG) and cellulosic pulp — directly into new polyester and regenerated cellulosic fibres. That question will determine how far the recycling operation can integrate into Huafon's existing manufacturing activities, and which additional partners will be needed to close the textile-to-textile loop.

Circ's process targets one of the industry's most persistent challenges: separating polyester and cotton from polycotton blends, which account for a substantial share of global textile production across clothing, workwear and home textiles. The process recovers PTA and MEG from the polyester fraction and cellulosic pulp from the cotton, yielding inputs for new polyester and regenerated cellulosic fibres rather than lower-value downcycled products. Recovering both fractions is central to the commercial viability of recycling blended textiles at scale.

Policy tailwind and next steps

The project aligns with China's industrial priorities for its forthcoming 15th Five-Year Plan, including improved waste recovery, greater use of recycled materials and advanced manufacturing technologies. Circ and Huafon intend to engage further with brands, textile manufacturers and downstream buyers as the project progresses, with additional processing capacity and related commercial activities envisaged.

Sourcing teams tracking certified recycled content should note that the deal is an announced intention, not a confirmed, fully specified investment: capacity, cost and timeline details remain undisclosed. The disclosure of a site, capex figure and commissioning schedule will signal how quickly the 73,000-ton annual target can translate into commercial volumes of recycled PTA, MEG and cellulosic pulp for fibre production.