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Monday, January 12, 2026

Circ and Sanyou forge five-year deal to boost recycled lyocell production

Circ, the Virginia-based polycotton recycling innovator, announced a significant partnership with China’s Tangshan Sanyou Group through its fiber division, Sanyou Chemical Fiber. Under this new agreement, Sanyou has committed to purchasing regenerated pulp from Circ’s first commercial-scale facility over a five-year period, marking a major step forward in accelerating the production of recycled lyocell fibers.

Circ’s forthcoming facility, expected to be operational by 2028, will supply high-quality regenerated pulp that will enable Sanyou to produce lyocell staple fibers with a minimum of 30% recycled content. The long-term purchase agreement not only demonstrates confidence in Circ’s recycling technology but also represents a shared commitment to advancing circular solutions in the textile supply chain.

“As one of the leading global cellulose producers, Sanyou’s commitment to Circ demonstrates the quality of our product,” said Peter Majeranowski, CEO of Circ. “Strategic partnerships like this are essential to building a truly circular fashion industry.”

This partnership comes as demand for sustainable alternatives continues to grow, with fashion brands under increasing pressure to adopt low-impact, recycled materials. Circ’s technology, which focuses on recycling polycotton textiles, plays a key role in transforming waste into valuable raw materials for next-generation fibers.

The announcement follows Tangshan Sanyou’s recent investment in a pilot test facility for circular textile innovation at its plant in Tangshan, China. The ten-ton pilot line will explore a new solvent-based process to convert waste cotton textiles directly into high-quality viscose fibers, part of its ReVisco recycled MMCF program. Already prepared to scale ReVisco to 200,000 tons annually, Sanyou is positioning itself at the forefront of the shift to circular fiber solutions.

Together, Circ and Sanyou are driving industry transformation by making recycled lyocell more accessible and scalable across global markets.

 
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