Pact Group and Plan B Circular Partner to Advance Textile Recycling Ahead of EU Regulations
Australian packaging and recycling company Pact Group has entered into a strategic partnership with UK-based Plan B Circular to accelerate textile-to-textile (T2T) polyester recycling and prepare the fashion industry for anticipated European Union regulations expected in 2028.
The collaboration will focus on expanding textile recycling infrastructure and exploring opportunities in Asia and other emerging markets. The move comes as the fashion industry faces increasing pressure to improve sustainability and reduce textile waste.
Currently, recycled polyester used by many fashion brands is primarily sourced from recycled plastic bottles. However, upcoming EU regulations are expected to encourage a shift toward recycled textile feedstocks, creating significant demand for closed-loop textile recycling solutions.
According to industry data, the UK generated approximately 1.45 million tonnes of used textiles in 2022, yet only around 1% was recycled back into new textile products. Most discarded textiles continue to be landfilled or incinerated.
To address this challenge, Plan B Circular, Pact Group, and Project Re:claim are developing large-scale textile recycling infrastructure. Project Re:claim operates one of the UK’s first commercial-scale facilities capable of recycling post-industrial and post-consumer polyester textiles into recycled PET pellets that can be transformed back into yarn for new textile production.
Pact Group will contribute its extensive experience in circular supply chain management through its retail solutions business, which manages the collection, reuse, and recycling of garment hangers worldwide. The partnership aims to provide fashion brands with traceable and sustainable recycling pathways while supporting the industry’s transition toward a circular economy.
Industry leaders believe the collaboration will help brands prepare for future regulatory requirements while reducing textile waste and increasing the availability of recycled textile materials.