Anders Sjöblom of Recover: “Science and Fashion Must Forge a Connection”

An impeccable navy blue suit made from recycled fabric by Recover, with a label on the sleeve that says so. This is the outfit Anders Sjöblom (Stockholm, Sweden, 1984) chooses for special occasions, such as visiting a brand he has to convince to become a client of Recover, the company he has been heading since 2024. He has lived in New York, Rome or La Paz, but confesses that he has fallen in love with Madrid, where he lives and where Recover’s headquarters are located, although its main production center is in Banyeres de Mariola (Alicante). Sjöblom applies his more than fifteen years of experience at H&M to the Spanish mechanical recycling giant, from where he analyzes the sector, the keys to its development and Spain’s role in the industry.

 

QUESTION: You joined Recover in 2024, leaving a mature company like H&M to jump into a sector as uncertain as recycling. Was it a risky move?

 

Answer: It was a different move. Risky, I don’t know. Sustainability is on the rise and I saw and see this inevitable need for the industry to change and move to using more sustainable and recycled resources, simply because there is a moral obligation to do so, as the environmental impact of the fashion industry is devastating, but also because the business model based solely on growing, growing and growing won’t work if we don’t use resources in a smarter way. That’s why I think recycling is an important part of the solution. So, from a commercial potential point of view, it was not risky. From the industry point of view, of course, this industry is at a much earlier stage, in a little bit more uncharted territory, so to speak. And in that sense, maybe it’s a little more risky. But no risk, no gain, right?

 

 

Q.: What have been the main changes you’ve seen?

 

A.: There are huge changes. Some of them are simply due to where you are in the supply chain. Working for a brand, which is arguably the highest level of the supply chain, and working in a factory, which is the lowest level, where it all starts, and then there are levels in between, which gives you a very different perspective and, in my case, has been very educational. Working in a smaller entrepreneurial company is also, in a way, different. But there are also other things that are very similar, I would say, in a good way. Even though Recover is much smaller, it is still a global company. We now operate on four different continents. We have team members of 18 different nationalities. There are similarities with H&M. Both companies also share a genuine philosophy, really, of trying to do something good.

 

 

“We have a strong culture and that’s thanks to the Ferre family. Having Alfredo Ferre with us here is great, but we are not a spinner, we are our own company, we have our headquarters here in Madrid. Most of our teams today are in other countries and focus on a different part of the industry.“

 

 

Q.: Recover presents itself as a science and cotton production company. How much of Recover is science and how much is textile industry?

 

A.: Definitely both. I think you can recycle cotton, maybe even without science, but you can’t scale up on a large scale or offer the quality, consistency and traceability that we offer without science. And science is very much our foundation. Our engineers, our skilled workers and our labs, which we have in all of our facilities, are fundamental to what we offer. But I think we are moving more and more into the textile industry or even into the fashion industry. Because science and fashion are two worlds that really need to come together. Talking about art and science is talking about fashion, but it’s also talking about recycling. Because you have to do something interesting, you have to do something that the consumer wants and understands, and that concerns all of us in the industry if we want a sustainable movement and change. So what we’ve done at Recover, focusing a lot in the last two years, is to partner directly with brands, to work with the big fashion groups, but also with supply chain partners to be more truly part of the textile and fashion industry.

 

 

Q.: Does Reover want to become a fashion brand?

 

A.: No, Recover wants to be a relevant ingredient brand in the fashion industry that can be useful for fashion brands. Our wish would be that, by using our brands, fashion brands could be even more proud of their production or their product, but, above all, that the customer would want to buy it even more, because they both understand that it is sustainably made, that it contains recycled materials, but also that it has a brand value that makes people want it. One of the key challenges with sustainability in general is that it has been talked about in a very factual way. We need to change and everyone knows that, but fashion is about emotions. And consumers act on emotion, 90% are emotional decisions, 10% is fashion. So we need to be much more driven by emotions and desire. And that’s where I think an ingredient brand can help create more desire, make it more fun and more desirable to buy the product.

 

 

Q.: Consumers want emotions. Does more emotion mean less science?

 

A.: Not less science, but less rationality and more emotion, more desire. I think, to a large extent, people buy fashion because they like it, because they want it. I don’t think the main driver is always a rational need, that you absolutely need that T-shirt. I think desire and want play an important role in fashion. The value for people is a combination of design, quality, emotions and rational aspects like price, durability and sustainability. But we have to help both sides to make sure it is perceived as valuable and that people buy it.

 

 

“Volume is key for our company, both by model and by target; without volume or scale it is impossible to have a big impact.“

 

 

Q.: What can we find from Hilaturas Ferre at Recover?

 

A.: I joined the company almost two years ago and, already at that time, it was completely independent from Hilaturas Ferre. So, as a company, Recover is and has been for several years a completely independent company. I think there is a part of our culture that has its origin in the Ferre family. And I’m very fortunate that Alfredo Ferre, a member of the family, is still on our team. So they are two completely independent and distinct companies.

 

 

Q.: Is recycling the key to the future of fashion?

 

A.: It is one of them. Especially when it comes to the fashion business, because in the last decades it has grown a lot and created a lot of value. And, in fact, it has also generated some improvements in social sustainability in the countries where textile production has started. It has been a way for people to get real work, secure work, and to improve their quality of life. But, of course, there is a very negative environmental aspect to the way we shop. We wear twice as many clothes now as we did ten years ago. And if you want to keep growing and creating business, but without harming the environment, I think recycling is a very interesting way to do that.

 

 

Q.: And what would be the other keys?

 

A.: Sustainability is certainly one of them. And sustainability is environmental and social. If we get a little more philosophical, sustainability is the planetary limits within which we must stay, but we must also stay within the social and financial limits. Make it possible in the long term. Fashion has to find its way in all those aspects. How do we make it sustainable? Do we find business models that can be financially good in the long run? How do we find ways of doing business that are sustainable for the environment and for the people involved in it? And how do we combine that with desire and emotion? Because, ultimately, that engine is very strong.

 

 

Q.: What about geopolitics? Are you concerned about it?

 

A.: Our original plant is in Banyeres, which is close, obviously, to Europe, but also close to North Africa and Turkey. We have another in Bangladesh and a third in Vietnam. And now we are building a fourth one in El Salvador, in Central America. So we have expanded with a clear strategy of being close to the different production centers of traditional fashion, because we want to reduce transportation costs, both for economic and sustainability reasons. So, in our case, I wouldn’t say we are worried about it. We are prepared and we have a clear strategy to be able to act regionally. And if the big fashion brands, for whatever reason, whether due to product preferences, consumer behavior or political and geopolitical changes, need to change and relocate their production, they can continue to count on us, because we are present in all those areas. That is one of the key strategies we have to be a true partner wherever we are needed.

 

 

Q.: How far is recycling from being a profitable business?

 

A.: The short answer is that it is still a couple of years away from being a profitable business. And it is essential that we find a way to accelerate the profitability or the possibility of making a profit in the sector. And I think that, in this sense, legislation is a really important tool, as are incentives and collaboration and cooperation in general along the whole supply chain. Because, today, Recover is one of the few players that has reached a considerable scale and is well established. Most of the other players remain start-ups or small innovative companies. And in order for them to grow and, in the case of those that have already grown, in order for them to sustain themselves, we have to be attractive for investments and there has to be the possibility to recoup the investments with profits. And I think that will take a couple of years yet.

 

Q.: You mentioned the word incentives.

 

A.: No doubt. From government institutions. It’s an avenue that certainly should be explored and where we could do a lot more. If you recycle, for example, there could be some kind of economic incentive, whether it’s in the form of taxes or something else that somebody should look into how to implement, but economic incentives for those who actually follow a more sustainable path.

 

Q.: Perhaps this would create an artificial profitability?

 

A.: If we look at the current situation of the sector, which is so far from profitability, I would not worry too much about artificial profitability, but rather about achieving natural profitability, because I think that is the first step. In fact, we have studied the plastics recycling sector quite a bit. In the 1990s, legislation was passed in Europe to regulate the structure and recycling of plastic packaging. I’m sure, with some of the discussions that were held then, what we can see is that, since then, there has been exponential growth year after year for thirty years and it continues to increase. So, in general, I think the market should solve it with consumer desire and desires as the main driver. But I also see legislation as a way to help that development and speed it up a little bit, because today, also in sustainability, it’s very difficult for consumers to have a full picture of what’s going on and understand exactly how they can make a better decision. And that’s why we should have legislation that helps consumers, that guides them a little bit and drives the positive momentum.

 

Q.: What about Recover? Has it reached its operating model and profitability yet?

 

A.: We have a good operating model. Is it ideal? Never. And the moment you say it’s ideal, you shouldn’t be doing this job, because there are always things to improve. We certainly still have a long way to go, fortunately, but we have a good operating model, we’re growing quite fast with some of the largest and strongest customers in the industry. And our product has proven its effectiveness on a large scale. At the same time, we’re doing a lot of innovation on how to scale it up even more, add new products, etc. So, in that sense, we are happy. But as to the question of whether we are profitable, we are not. We are still in an investment and growth phase, opening new plants and developing new products. So we are not profitable yet.

 

Q.: How long is the investment phase going to be?

 

A.: Today we have stable investors and owners, Story3 and Goldman Sachs. So we are not currently looking for external financing. But, of course, for us, as for the sector in general, I think it is quite urgent that there is a more natural dynamic in the industries and incentivizing legislation to accelerate the process that allows players to scale and achieve profits. Otherwise, there is a risk that current capacity will disappear or that talent, knowledge and know-how will be lost, or that some of these great innovations that exist will never have the opportunity to grow.

 

 

“One of the key problems with sustainability in general is that it has been talked about in a very factual way”

 

 

Q.: What do you think Goldman Sachs saw in Recover?

 

A.: Why did they invest in Recover? I’m sure that’s a question for Goldman Sachs. But I still think that when you have a company that has a unique position, a strong product and unique expertise in a growing industry, it’s an attractive case to invest in. That would be my general view, I imagine that’s what they saw, because the sustainability sector is growing and has been growing for some time. And despite the perception that sometimes we may have in the media, the fact is that it is still growing and the commitments from brands are strong, legislation is being prepared and, in fact, several brands are even increasing their commitments. So, I think this offers an interesting opportunity for investment.

 

 

Q.: How important is volume for your company?

 

A.: Volume is key for our company, both for the business model and, above all, for our objective. Our goal is to drive large-scale sustainable change in the fashion industry. Without volume or scale it is impossible to have a big impact. Some of the niche innovations that exist and are perhaps interesting will struggle to make a difference and solve the industry’s problems, because the industry’s problems are related to volume. If you want to be part of the solution, you need volume.

 

 

Q.: Has there been a paradigm shift since the Renewcell crisis?

 

A.: Honestly, I’m not sure it has been a big change in the industry, but I think it illustrates the fact that financial incentives and investment attractiveness are extremely important. We have to make sure that companies can survive, especially those that have already invested, like Renewcell, because if too many disappear, that will set us back several years in this development. And then we won’t be able to meet the needs that will arise when the legislation comes into effect. And, frankly, that change was already needed yesterday. That’s why I think every time somebody has to file for bankruptcy, it’s a disappointment for everybody.

 

 

Q.: Why did you opt for a regional approach?

 

A.: I can think of three reasons. The first is to be close to where it is produced, as we manufacture fiber that is integrated into the production supply chain. So if we can limit the need to transport it around the world, we reduce the impact on sustainability and we can keep costs down and offer a competitive price for our product. That is the first reason. The second is to be a global partner, because many of these big fashion groups today have a very complex sourcing map and need to be able to source from different parts of the world, but maintain consistent quality. That’s why we have focused on the major regional textile production centers. And then the third one, which I think is a little bit related to what we have discussed about the macroeconomic development in geopolitics, is that we see nearshoring becoming more and more important for brands to be able to produce close to the market where they intend to sell. In that case, you may have an order, a product that you want to split between different locations, depending on whether it’s destined for your customers in Asia, the United States or Europe. But you still want a consistent, fully traceable product. And then you need recycled material from the same supplier in all those areas.

 

 

“Spain needs to support and maintain the industry that still exists today if it wants to be a textile recycling center”

 

 

Q.: Do you envision nearshoring for Europe?

 

A.: To a certain extent, but I think in Europe nearshoring is with North Africa and Turkey. So it’s not always about political borders, but maybe more about geographic borders, like Central America and Mexico for the United States. And, of course, the large Asian markets for Asian countries. Producing closer is a reality. And I think it’s a business driven by the need to be able to respond quickly to customer demand and also if they have different demands. There is also a component of traceability, to know where the raw material comes from, especially when it comes to recycling.

 

 

Q.: Spain wants to become a textile recycling center. Do you see this as possible?

 

A.: Yes, I think it is possible. It is not going to happen by itself, but it is possible. Spain has a very good legacy of textile industry and also good geographical position. There is still some active textile industry, unlike other European Union countries that have lost it completely. One of the key challenges for Spain is to make sure that we find ways to keep the active textile industry that exists to retain the knowledge and skills and not lose them to other countries or other industries. Spain is also very well placed geographically to be a hub close to North Africa and Turkey, but within the European Union, with a lot of renewable energy. So there are strengths, but you need to maintain and support the industry that exists today to really occupy that position.

 

 

Q.: Has demand for recycled fabric brands increased?

 

A.: Demand is increasing. In the last few years we are seeing a new phase. A lot of the big companies did their analysis, saw where the world is going and made commitments to sustainability. Now they are in the phase of implementing those commitments, which is very different from actually doing what you set out to do. This is driving an increase in demand. But this is also where some of the challenges become apparent. How does this actually fit into the supply chain? How do you align everyone in the supply chain so that they feel incentivized to do this? It’s not just about the brand, it’s about everyone from the garment manufacturer to the factory to the spinning mill to fiber manufacturing.

 

 

“It’s no coincidence that the best performing brands are also the ones with a very conscious sustainability agenda”

 

 

Q.: What would you say are the brakes on demand growing faster?

 

A.: For one thing, you have to attack the complexity of the supply chain and make sure that everybody has incentives to do it, incentives and the need to do it, so that there is accountability for making it happen. That’s where sometimes a lot of things stop. There’s a lot of innovation and there’s a lot of commitment and willingness on the part of brands, but embracing these innovations and scaling them up, that’s where we have the biggest challenge. And, as we discussed earlier, I think legislation is necessary for two reasons. First, it provides accountability for quality and a clear direction for both investment and for industry activities and priorities. But the other is that it also levels the playing field for those brands that are serious about sustainability and really invest heavily in it. They need to be able to compete on a fair footing with brands that don’t care about sustainability. If they’re constantly being undercut and the consumer doesn’t understand the difference, then we won’t have that good momentum, and legislation can really help to establish that kind of level playing field.

 

 

Q.: Is it a price problem or a communication problem?

 

A.: It’s a combination of price and incentives. Price is key for the consumer. We have seen that there is a big behavioral gap in consumers. The data shows it clearly. People want, they express a desire, a genuine desire to be more sustainable. But at the actual moment of the transaction, price carries much more weight, and I think that’s why legislation ensures that when you get to that point where price is decisive, sustainability is already covered and built in through other incentives, legislation, etc. Communication is also important.

 

 

Q.: Who should lead innovation in fashion?

 

A.: When it comes to technical innovations, it should definitely be a company like Recover. Then we need brands to lead the desire or demand to adopt these innovations and scale them up. Because that won’t happen without brands saying they want more recycling to their supply chain. Their supply chain will give them what the brands ask for. So brands should demand sustainability and, in some cases, legislation should demand sustainability from brands to really accelerate it. But the technical innovation must come from the companies that have the technical specialty or the specialists. All the players must be on the same page.

 

 

“The textile industry is a sector where, of course, many players compete on price. Therefore, margins are always a relevant issue for all players in the textile industry. And in terms of price, reclaimed and recycled materials, our recycled cotton is quite competitive, or rather, it is competitive. It is in the same range as some virgin cottons, such as regenerative or organic.“

 

 

Q.: Is fashion serious about sustainability?

 

A.: There are certainly a number of brands that take sustainability very seriously. And if you look at the data alone, we see that, despite what you might perceive, 34% have increased their commitments and their sustainability in the last two years. All the big ones, most of the big ones, take it very seriously. Some of them, or many of them, need to accelerate their implementation, because it’s not going to happen on its own and a commitment, however sincere, is not enough. It’s just a starting point.

 

 

Q.: Legislation or conviction?

 

A.: There are three underlying reasons why they take it seriously. One is that consumer preferences are changing very rapidly. Awareness is changing. Yes, it’s slow. And yes, it’s not happening today in every transaction. But if you look at the younger generation, they have much stronger views on sustainability than they used to. So the consumer is changing. Brands realize that. The commitments they have made, being listed companies, they have to live up to them. Also, legislation is coming. So I think these three factors, whether it’s consumer desires, their own commitments or legislation, all point in the same direction. Here and now, the easiest thing to accelerate is legislation.

 

 

Q.: Donald Trump has told the UN that climate change is a “big lie” and Brussels is reducing its requirements. Is the world going backwards?

 

A.: I don’t think the urgency has gone away or that the industry is not taking it seriously or realizing the challenge. In my interactions with our customers, with brands, there is a consensus that the current and historical ways of doing the fashion industry are not working. And it’s not just from an environmental and moral aspect. It’s also from a business standpoint. Any company driving growth has to think about how it’s going to secure raw materials to keep going. At some point, raw materials will not be enough to drive growth. So you have to think about how to secure a larger supply of raw materials, and recycling is one of the solutions.

 

 

Q.: What would you say to a CEO who has put sustainability on the back burner?

 

A.: Sustainability is important because it is becoming a competitive advantage or a competitive disadvantage. And I would point to data on both consumer preferences and what some of the strongest and best companies out there are doing. I don’t think it’s a coincidence that some of the best performing brands are also the ones with a very conscious sustainability agenda. I would also point to legislation. It will be a limiting factor if you don’t have a consistent sustainability agenda and take a position on it.