Proparco has granted RE&UP Recycling Technologies, a circular-tech textile recycling venture of SANKO Group, a senior loan that will enable RE&UP to scale its next-gen recycle fiber production and textile recycling capacity, while reducing its carbon and water footprint. Thus, setting it on the path to become one of the largest textile-to-textile recycling companies globally.
The 70 million euro loan provided by Proparco will be used to increase RE&UP’s textile recycling capacity in Gaziantep, Turkey.
This loan is the second financing provided by Proparco to SANKO Group. The first loan of 37 million euro was provided in 2021 for sustainable investments and job creation within the Group’s textile subsidiary. With this new loan, Proparco supports RE&UP’s environmentally friendly recycling investment and its long-term strategy to help accelerate the textile industry’s transition towards a circular model.
In 2023, the textile industry accounted for 10% of global emissions, with fashion sales forecast are expected to grow by +25% between 2016 and by 2030. Decarbonization pathways for the textile industry rely mostly on decarbonizing energy supply and recycling initiatives. RE&UP’s new investment will use electricity produced from 100% renewable energy sources, hence contributing fully to the green transition of the sector.
SANKO Group, with over a 120-year legacy and experience in the industry, is a well-known business partner of Proparco. The Group’s vision is reflected in its sustainable investment strategies, which are in line with Proparco’s core strategies of supporting sustainable and resilient economies as well as protecting the planet.
The investment will support RE&UP to increase its capacity by building a new textile-to-textile recycling factory in Gaziantep, with equipment including the installation of 8.4MW capacity rooftop solar panels for self-consumption.
Rémy Rioux, CEO of AFD Group highlights “the unique opportunity this signing represents to strengthen our partnership with one of Turkey’s most forward-thinking and sustainability-oriented companies. Over time, SANKO has demonstrated its commitment to environmental innovation.
Working together with RE&UP Recycling Technologies backed by SANKO Group in the textile recycling industry allows us to support SANKO’s involvement in Turkey’s carbon-neutral path, increase employment opportunities, and foster resilience in the Gaziantep community, which is facing significant challenges following the recent earthquake.”
“We as Proparco are proud of supporting RE&UP Recycling Technologies backed by SANKO Group in their textile recycling investment through which amplified effects on the decarbonization of the industry will be achieved. The project will also serve to promote circular business models in an environment where social awareness and expectations on the topic are also increasing. This second transaction with SANKO Group, through its circular-tech venture RE&UP, has sealed the strong relationship and common understanding between both parties towards a more sustainable future.” said Stéphane Froissardey, Regional Director of Proparco.
“We are deeply grateful for Proparco’s continued support and investment in our vision for a more sustainable future. This new investment will significantly enhance the ability of RE&UP to scale its next-gen recycle fiber production and textile recycling capacity to 1m tons by 2030 and by doing so, we aim to set a new standard for circularity in the textile industry.
This partnership not only strengthens our commitment to reducing environmental impact but also reaffirms our strong relationship with Proparco, propelling us forward as leaders in pioneering circular economy solutions. Together, we are paving the way for a transformative, greener future in our industry.” said Fatih Konukoglu, Vice Chairman of SANKO Holding and Chairman of RE&UP Recycling Technologies.
