Textile Recycling Hub Opens in Bangladesh to Tackle Fashion Waste
Bangladesh opens its first industrial textile recycling plant, processing 50,000 tons annually to convert garment waste into new fiber.
Textile Recycling Hub Opens in Bangladesh to Tackle Fashion Waste
Bangladesh's first industrial-scale textile recycling facility began operations in Gazipur on December 21, 2025, with capacity to process 50,000 tons of post-consumer and post-industrial textile waste annually. The $78 million plant, developed by Swedish-Bangladeshi joint venture Re:newcell Dhaka, converts cotton and blended fabrics into dissolving pulp suitable for new fiber production.
Bangladesh, the world's second-largest garment exporter after China, generates an estimated 400,000 tons of textile waste annually from its 4,500 factories.
Processing Technology
The facility uses chemical recycling to break down cotton cellulose into a viscose-grade pulp, which can be spun into new yarn. The process recovers 85% of input material by weight and uses closed-loop chemical recovery to minimize waste discharge. Blended fabrics containing up to 40% polyester can be processed, with synthetic components separated and directed to plastic recyclers.
"Chemical recycling is the only scalable solution for mixed-fiber textiles, which represent 70% of global fashion waste," said Patrik Lundstrom, CEO of Re:newcell. "Bangladesh is the logical place to build this capacity."
Industry Integration
Major fashion brands including H&M, Zara parent Inditex, and Primark have signed offtake agreements for recycled pulp, which will carry a 15-20% price premium over virgin viscose. The EU's forthcoming textile waste regulations, requiring separate collection and recycling targets from 2025, create additional demand pull.
Bangladesh Garment Manufacturers and Exporters Association president Faruque Hassan said the facility "positions Bangladesh as a leader in circular fashion, not just fast fashion."
Employment and Training
The plant employs 650 workers, primarily recruited from nearby garment factories. A six-month training program covers chemical handling, quality control, and environmental monitoring. Wages average 25% above standard garment sector pay.
A network of 200 collection points across Dhaka, Gazipur, and Narayanganj aggregates factory offcuts and rejected garments that previously went to landfill or informal downcycling.
Scaling Vision
Re:newcell Dhaka plans to triple capacity to 150,000 tons by 2028, with additional facilities under consideration in Vietnam and India. The global textile recycling market is projected to reach $8.2 billion by 2030, growing at 12% annually.
Critics note that recycling alone cannot offset the environmental impact of the fashion industry's 100 billion new garments produced annually, and call for parallel efforts to reduce overproduction and extend garment lifespans.