Dutch firm RE&UP Recycling Technologies secures €70M from Proparco to push fashion & textile industry to circularity

Eindhoven-based RE&UP Recycling Technologies, a circular-tech textile recycling venture of SANKO Group, announced on Wednesday that it has secured €70M senior loan from Proparco.

The latest capital injection will allow the Dutch company to increase its capacity by building a new textile-to-textile recycling factory in Gaziantep, Turkey, with equipment including installing 8.4MW capacity rooftop solar panels for self-consumption.

This loan is the second financing provided by Proparco to SANKO Group.

The initial loan of €37M was provided in 2021 for sustainable investments and job creation within the Group’s textile subsidiary.

Furthermore, RE&UP’s new investment will use electricity produced from 100 per cent renewable energy sources, contributing fully to the green transition of the sector.

“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,” says Fatih Konukoglu, Vice Chairman of SANKO Holding and Chairman of RE&UP Recycling Technologies.

“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,” adds Konukoglu.

RE&UP Recycling Technologies: Textile-to-textile recycling technology 

Led by Fatih Konukogl, RE&UP Recycling Technologies aims to reshape the traditional textile-to-textile paradigm by producing next-generation cotton and Polyester that maintain the same performance as virgin fibers.

The company is focused on recycling textile waste into high-quality, traceable Next-Gen fibers using unique proprietary technology.

According to RE&UP Recycling Technologies, its technology can recycle the majority of polycotton blends and is helping the fashion industry move towards a circular model.

The company, RE&UP, is founded and backed by SANKO, which boasts over 330 patents.

The company has up-and-running operations in Türkiye and aims to address more than 200 Kt recycling production annual capacity by 2025.

Additionally, the company plans to increase to over 1 Mt global recycling capacity by 2030.

Proparco: What do you need to know?

Proparco, a subsidiary of the Agence Française de Développement Group, has been working with the private sector for over 45 years to create sustainable solutions for environmental and social challenges in Africa, the Middle East, Asia, and Latin America. 

They offer tailored financial solutions and technical assistance to support business development.

“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,” says Stéphane Froissardey, Regional Director of Proparco.