Pact has partnered with Plan B Circular, the UK’s first commercial-scale textile-to-textile (T2T) polyester recycling company, to accelerate T2T recycling ahead of anticipated EU legislation expected in 2028.

The agreement will also evaluate options to expand into Asia and other key growth markets. Today most brands use bottle flake as their recycled polyester source. EU legislation expected in 2028 is anticipated to change that entirely, triggering a market-wide pivot affecting every fashion brand selling into Europe. With integration timelines of up to 12 months, forward-thinking brands are already securing sourcing routes with Plan B. Together, Plan B and Pact are committed to making textiles truly circular at global scale.

According to the recent WRAP (The Waste and Resources Action Programme) market situation report the UK generated 1.45M tonnes of used textiles in 2022¹. Currently, only 1% of those 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.

Project Re:claim recycles 100% post-industrial and post-consumer polyester textiles that would otherwise be incinerated or sent to landfill and converts them into recycled PET pellets that can be spun back into yarn. Trials are already underway with multiple spinners and fabric mills internationally, and with Pact’s global reach, Plan B is well positioned 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.

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 hangers are sorted, quality inspected and distributed to garment and accessory suppliers so they can be reused multiple times instead of being sent to landfill.  Hangers not suitable for reuse stay in the loop because the material is recycled and used to produce new hangers.

Tim Cross, CEO of Plan B Circular, said: “We have spent years developing the technology and building the infrastructure to make textiles truly circular. The 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.”

Pact EGM Retail Solutions Camillo Colombo said: “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.”