H&M Group signs strategic sourcing deal with Circulose

In a major step toward building a circular fashion industry, H&M Group has signed a multi-year strategic sourcing agreement with Circulose, committing to source substantial volumes of the innovative material CIRCULOSE® to replace a significant share of the virgin viscose used across its brands.

The agreement marks a pivotal moment in scaling next-generation materials and accelerating the industry-wide shift away from virgin fibers. CIRCULOSE is produced entirely from 100% recycled textile waste and can be transformed into man-made cellulosic fibers, such as viscose and lyocell, offering fashion brands a high-quality, circular alternative to conventional fiber sources.

The partnership is not only strategic for H&M Group, but also vital for Circulose, which is ramping up production following its transition from Renewcell. By sourcing CIRCULOSE® at scale, H&M Group reinforces its leadership in sustainable innovation and strengthens its long-standing commitment to circularity, paving the way for other industry players to follow.

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