What: French engineering giant Technip Energies aims to transform textile waste into a $2 billion recycling business through its Reju venture, leveraging industrial expertise to revolutionize polyester recycling.

Why it is important: This development represents a crucial turning point in fashion's circular economy, as industrial-scale solutions emerge to address both regulatory pressures and consumer demands for better quality recycled materials.

Technip Energies, known for building oil refineries and LNG platforms, is making a bold move into textile recycling through its newly launched materials regeneration company, Reju. The initiative aims to establish a $2 billion business by 2034, targeting the growing challenge of textile waste, which currently amounts to over 100 million tonnes annually. The company's approach leverages its industrial engineering expertise to deliver superior recycled materials that compete on quality rather than just environmental credentials.The venture stems from a collaboration between Technip Energies, IBM, and Under Armour, utilizing IBM's chemical recycling technology to process mixed textile waste into high-quality polyester pellets. With production already underway at a 1,000-tonne plant in Germany, Reju plans to expand to industrial-scale facilities in Europe and the US by 2028, aiming to produce 100,000 tonnes of recycled polyester annually. This initiative stands out for its focus on creating better products rather than merely sustainable ones, addressing a critical market gap in textile-to-textile recycling.

IADS Notes: Technip Energies' ambitious entry into textile recycling last year reflects a broader transformation in retail sustainability, driven by both regulatory pressure and market opportunities. This move aligns with growing industry collaboration trends, as evidenced by Circ's strategic partnership with Birla Group in October 2024 , which secured substantial commitments for recycled materials. The initiative addresses evolving consumer expectations, demonstrated by Selfridges' nationwide expansion of circular retail services and their goal to achieve 45% of transactions from circular products by 2030 . The timing is particularly significant as the NRF's 2024 Retail Circularity report highlights the critical need for improved recycling infrastructure and cross-industry collaboration. This is further reinforced by successful luxury sector adaptations, such as Harvey Nichols' partnership with Luxury Promise , showing how traditional retailers can integrate circular principles while maintaining market positioning. These developments collectively indicate that textile recycling is moving from a sustainability initiative to a core business strategy in retail.

French engineering giant Technip Energies aims to expand its textile recycling company