Swedish group H&M announced the launch of a textile recycling facility with German company Remondis.
The project, called Looper Textile, will be developed in European markets. The partners plan to introduce innovative collection and sorting practices.
As part of the project, about 40 million garments will get an extended life cycle in 2023. The companies will test different collection schemes for used clothing and automate sorting to achieve the latest textile collection and handling standards.
H&M said Looper is to become "the preferred supplier of raw materials for companies and innovators involved in textile resale and recycling." Emily Bolon, head of commercial, consulting and strategic partnerships at the H&M Group, was named CEO of the new business.
According to him, unwanted and used clothing will be collected at various destinations and sorted by type and material to be given a second life or sent for recycling. According to the latest figures, about 40 percent of used clothing in the EU today ends up in the collection.
H&M is going through some pretty tough times. The company is facing a significant slowdown in sales in 2022. And the departure from Russia and a cost-cutting program has resulted in a loss of more than $250 million and a substantial drop in net income.