Textile recycling technology company Circ has entered into a partnership with Chinese textile fibre producer Shenghong to expand the commercial availability of recycled polyester made from discarded textiles.
Under the agreement, Shenghong will purchase recycled polyester chips recovered from textile waste using Circ’s recycling technology. The Chinese manufacturer will then convert the material into recycled-content filament yarn at commercial scale, targeting global brands, textile mills and other supply chain partners seeking greater access to circular raw materials.
The collaboration is designed to establish a more direct pathway from post-consumer textile waste to new polyester fibres, connecting textile waste recovery technologies with large-scale fibre manufacturing infrastructure.
From Textile Waste to Commercial Filament Yarn
Polyester remains one of the most widely used fibres in the global textile and apparel industry, making the development of scalable textile-to-textile recycling technologies increasingly important for reducing dependence on virgin fossil-based raw materials.
Through the new partnership, Circ and Shenghong aim to demonstrate the suitability of textile-derived recycled polyester for filament yarn applications while establishing a manufacturing model that can potentially be replicated and expanded in the future.
Circ’s technology focuses on recovering raw materials from discarded textiles so they can be returned to textile production rather than being directed toward lower-value applications or disposal.
Shenghong’s fibre manufacturing capacity will provide the next step in this process by converting Circ’s recovered polyester material into yarn suitable for use across established textile supply chains.
Scaling Circular Polyester Production
The partnership brings together recycling technology and established fibre manufacturing capabilities, addressing one of the key challenges facing textile-to-textile recycling: moving recycled materials from technological development and pilot projects into commercially viable, large-scale production.
According to the companies, the collaboration is expected to increase the supply of recycled polyester derived from used textiles while reducing reliance on virgin fossil-based feedstocks.
It will also allow Circ’s recycled polyester to be validated across filament applications, an important step toward increasing its adoption among textile manufacturers and international brands.
For Shenghong, the cooperation provides an opportunity to integrate textile-derived recycled feedstock into its existing fibre manufacturing operations and respond to growing demand for circular materials across global textile supply chains.
Read More: Plan B Circular and Pact Group Partner to Scale Textile-to-Textile Recycling Globally
Circ Expands Its Textile Recycling Network
The Shenghong agreement is part of Circ’s broader strategy to build manufacturing partnerships capable of bringing recovered textile materials back into established fibre production systems.
Earlier in 2026, Circ announced a partnership with Chinese viscose filament producer Xinxiang Bailu Chemical Fiber Co. aimed at expanding access to recycled fibres for existing fashion and textile supply chains.
The latest collaboration extends this approach into recycled polyester filament production and highlights the growing importance of cooperation between recycling technology developers and large-scale fibre manufacturers.
As the textile industry seeks to move from conventional recycling models toward closed-loop systems, partnerships connecting textile waste recovery directly with commercial fibre production could play an increasingly important role in making textile-to-textile recycling available at industrial scale.
