AUSTRALIAN-based plastic recycler and packaging manufacturer Pact Group has teamed up with Plan B Circular, a UK-based textile-to-textile (T2T) polyester recycling company, to accelerate T2T recycling ahead of anticipated EU legislation expected in 2028.
The agreement will also evaluate options to expand into Asia and other key growth markets.
Today, most brands are said to use bottle flake as their recycled polyester source. However, Pact Group and Plan B Circular say EU legislation is anticipated to change that, triggering a pivot affecting every fashion brand selling into Europe.
According to the recent WRAP market situation report, the UK generated 1.45 million tonnes of used textiles in 2022. Currently, only 1% of those textiles are recycled back into textile products, with the majority being incinerated or sent to landfill once they reach the end of their life.
Plan B Circular, Pact Group and Project Re:claim are building the infrastructure to change that. Project Re:claim is a joint venture between Plan B Circular and Salvation Army Trading Company Ltd (SATCoL) and operates what has been hailed as the first commercial scale post-industrial and post-consumer polyester textile recycling plant in the UK.
Project Re:claim recycles 100% post-industrial and post-consumer polyester textiles and converts them into recycled PET pellets that can be spun back into yarn. Trials are underway with multiple spinners and fabric mills internationally. SATCoL is the largest charity-owned textiles collector in the UK, processing 77,000 tonnes of textiles annually.
Pact Group has expertise in the fashion industry supply chain through its retail accessories division, which collects and redistributes used plastic garment hangers from retail stores globally. The hangers are sorted, quality inspected and distributed to garment and accessory suppliers so they can be reused multiple times. Hangers not suitable for reuse stay in the loop because the material is recycled and used to produce new hangers.
Tim Cross, CEO of Plan B Circular, said, “We have spent years developing the technology and building the infrastructure to make textiles truly circular. The legislation expected in 2028 is the moment the whole market catches up. Brands that act now will have verified, traceable sourcing routes in place. Those that wait will be scrambling. Pact’s partnership gives us the reach to make this happen at global scale.”
Camillo Colombo, executive general manager, retail solutions, at Pact, added, “Pact’s existing presence in the global fashion supply chain through our retail solutions business enables us to expand our expertise across the fashion and textile sectors beyond just hanger and packaging reuse. This investment in Plan B Circular demonstrates our commitment to leading the circular economy through partnerships and collaboration to offer sustainable, verifiable solutions for clothing manufacturers and retailers ahead of the anticipated 2028 regulatory changes.”
