H&M and Circulose Strengthen Partnership With New Long-Term Purchase Agreement

H&M and Circulose are once again joining hands. The Swedish retail giant, which between 2017 and 2023 was part of Renewcell’s capital as a minority shareholder, has now rejoined forces with the next-generation materials company. The two companies have signed a long-term purchase commitment, making H&M the next gen company’s first large-scale partner.

The deal joins a growing list of commitments being sealed by fashion giants with next-gen materials companies that aim to boost fiber production to a scale sufficient to meet fashion’s sustainability goals. The latest was led by Gap, which pledged to purchase recycled polyester from Syre. Circ and Ambercycle, meanwhile, have also secured similar agreements in the first half of 2025.

“H&M has been a driving force in advancing circular and sustainable solutions in fashion, as well as an early supporter of Circulose, even going back to when it was operating as Renewcell . Circulose is, in fact, the new name adopted by the next gen company, also Swedish, after saving it from bankruptcy at the last minute.

H&M entered in 2017 in the capital of Renewcell, which operates today as Circulose

The relationship with H&M began in 2017, when the company took a minority stake in the capital. Last year, however, and despite having the Swedish company as an investor and a client portfolio made up of other giants such as Inditex, Renewcell filed for bankruptcy as it did not have sufficient financing to maintain its operations. Finally, it was an investment fund that acquired the company, which now operates under a new name and business model.

“This partnership reflects Circulose’s renewed business strategy, focused on close collaboration with brands, concrete implementation support and a new licensing-based pricing model,“ the company said in a statement.

The agreement will help the company next gen to achieve a sufficient volume of orders, with the aim of restarting its factory. The company plans to sign long-term purchase contracts this year and then start producing recycled cotton and viscose fiber again in 2026.

The collaboration between the two companies has one final point in common. At the end of last year, Circulose recruited Helena Helmersson as chairman of the board of directors, who joined Circulose after a four-year stint as CEO of the Swedish giant.