In Sweden, Re:newcell AB, a recycler of cellulosic textile waste into new raw material for making clothes, is considering compatriot forest industry major SCA's Ortviken industrial area as an option to build a new Circulose plant. Re:newcell currently has 7 000 tonnes per annum production capacity at a demonstration plant in Kristinehamn and is now planning to scale up production capacity tenfold.
According to a joint statement, the new plant would have the capacity to manage around 70 000 tonnes of discarded textile a year and would employ around 100 people with a potential for future expansion.
We have to scale up our production rapidly to meet the demand for our product from the fashion industry. Therefore, we are now evaluating Ortviken as an option for an investment in the range of SEK 1 billion (≈ EUR 96 million) to build a new larger recycling plant. We have not yet made a decision on where the plant will be located and the consultation we are now initiating is the first step of in-depth evaluation, said Patrik Lundström, CEO of Re:enewcell.
In August 2020, SCA announced its intention to invest SEK 1.45 billion (≈EUR 140.58 million) in the production of chemically pre-treated thermo-mechanical pulp (CTMP) at its Ortviken paper mill in Sundsvall while at the same time, discontinue publication paper manufacturing at the site.
Since part of our process is based on traditional paper and pulp technology, much of what we need is already in place at Ortviken – good infrastructure, logistics solutions, and a stable landlord. There is also very experienced personnel available in the region. This means that we could be up and running with production already in the first half of 2022 if the permitting process runs smoothly, Patrik Lundström said.
Just days prior SCA confirmed its own investment plans for Ortviken.
We are happy to be able to provide space and infrastructure for new operations in Ortviken, where we have decided to discontinue the publication paper production. Ortviken is an industrial area with great qualities, both the infrastructure on the site but also the access to unique transport infrastructure. We will make use of the great opportunities this industrial area provides, both for our own continued development as well as for other operations, said Ulf Larsson, CEO of SCA.
