Recover is launching a joint venture in partnership with textile manufacturer Intradeco meant to produce recycled cotton fiber in a new processing plant in Central America, according to a press release last week.
The companies said the project is meant to revolutionize textile production in the Western hemisphere. The venture will be based in El Salvador and is set to start operation in 2025. Initial textile shredding will temporarily be managed out of a Recover factory in Spain, per the release.
The partnership marks the beginning of a process designed to create closed textile loops and more circular textiles systems, per the release.
The companies added that the collaboration will benefit from the growing importance of the Central America region, where many brands are establishing production hubs. It’s designed to capitalize on the Dominican Republic-Central America Free Trade Agreement, or CAFTA-DR, per the release.
The processing plant’s location is close to textile waste and production streams, which Recover said allows the plant to operate in a cost-efficient manner with fast lead times. The companies added that the initiative will address the demand for nearshoring and help simplify brand’s compliance with the Uyghur Forced Labor Prevention Act, a 2021 law that generally bans products from the region over forced labor concerns.
Recover’s other production hubs are located in Spain, Bangladesh, Vietnam and Pakistan. The company opened its Vietnam facility earlier this year.
Recover has partnered with Perry Ellis, Land’s End and Tilly’s. Its investors include Goldman Sachs, Fortress Investment Group and Eldridge Industries.