Pact Group buys into UK textile-to-textile innovator

Australia’s Pact Group has taken a stake in Plan B Circular, the UK’s first commercial-scale textile-to-textile (T2T) polyester recycling company.

Pact believes upcoming EU legislation will trigger ‘a market-wide pivot affecting every fashion brand selling into Europe’ from using bottle flake as their recycled polyester source to T2T material.

‘With integration timelines of up to 12 months, forward-thinking brands are already securing sourcing routes with Plan B,’ says a company press release. ‘Together, Plan B and Pact are committed to making textiles truly circular at global scale.’

Pact Group has expertise in the fashion industry supply chain through its Retail Solutions division, which collects and redistributes used plastic garment hangers from retail stores globally. The agreement will also evaluate options to expand into Asia and other key growth markets.

Infrastructure

Currently, only 1% of used 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 the first commercial scale post-industrial and post-consumer polyester textile recycling plant in the UK.

Trials to convert post-industrial and post-consumer polyester textiles into recycled PET pellets that can be spun back into yarn are already underway. Pact says its global reach will help Plan B to scale quickly to meet growing demand.

‘SATCoL is the largest charity-owned textiles collector in the UK, processing 77 000 tonnes of textiles annually. Together with Plan B Circular, the partnership is uniquely positioned to solve the UK’s post-consumer textile waste challenge.’

Global expertise

Tim Cross, ceo of Plan B Circular, says the innovator has spent years building the infrastructure to make textiles truly circular. ‘The EU 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.’

Commitment

For Pact, Camillo Colombo adds: ‘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.’