RENEWCELL SHARES LOSE 77% OF VALUE IN A WEEK, PROMPTING CONCERNS ABOUT RECYCLING REVOLUTION: The share price of Swedish #textile recycling technology company Renewcell has fallen 77 per cent after huge amounts of stock were sold off last week. Renewcell shares are now valued at just 13.7 Swedish krona (£1.03).
The dramatic market developments raise doubts about the broader chemical textile-textile recycling sector given that Renewcell is one of the most high profile and – until now – promising players in this space.
Renewcell issued a gloomy trading update last week in which it said it expected poor sales to hit profits and cashflow in the remainder of 2023.
The problem appears to be poor demand for its recycled fibres.
Renewcell shares have now lost almost 90 per cent (88.5) of their value since 2021. Renewcell listed its shares on the Nasdaq First North Premier Growth Market on November 26, 2020.
Renewcell has developed a process which recycles cellulosic-rich clothing such as jeans and produces dissolving pulp (the company’s flagship product, ‘Circulose’). This pulp can be used to make man-made cellulosic fibres such as viscose, lyocell, modal, acetate and other types of regenerated fibres which can in turn be spun into yarns, woven or knitted into fabrics.
H&M invested and became a shareholder in Renewcell in 2017. Many other brands and retailers have launched capsule collections containing Circulose. These include Levi’s, Inditext (Zara), Ganni, Pangai, Filippa K, and Bestseller (Vero Moda).
This is what we wrote about Renewcell in our Textile Recycling Guide, published this summer: “Renewcell has many strengths. Underpinning everything is that its technology borrows heavily from machinery already used in the pulp and paper industry (the company itself describes it as a “drop-in” innovation). This reduces risk compared to some other players in this segment.
“Renewcell appears eminently well positioned to capitalise on burgeoning global demand for clothing containing recycled textile fibres. Its proposition is ready, proven and has considerable financial backing following a stock flotation. Brands also appear to be queuing up to work with the company.
“Quite simply, if Renewcell cannot make a success of this emerging new market, it is hard to see who will.”
(https://lnkd.in/eT5QNefi)
https://lnkd.in/eh65GzzD
Advisor and Member of BoD - Trade, Energy and Mining
1moIt’s truly encouraging to see industry leaders come together to drive such impactful initiatives. This collaboration sets a strong precedent for the future of sustainable projects. Looking forward to seeing more endeavors of this nature.