The largest apparel retailer in the world, Inditex, which owns Zara, has committed to purchasing recycled polyester from a U.S. start-up as part of its 2030 goal to get 25 percent of its fibers from "next-generation" materials.

As fast-fashion retailers are under pressure to utilize recycled textiles and reduce waste, Inditex is investing more than 70 million euros ($74 million) to ensure a supply of its recycled polyester derived from textile waste from Los Angeles-based Ambercycle, as reported by Reuters.

RUSSIA-UKRAINE-CONFLICT-ECONOMY-ZARA
(Photo: by KIRILL KUDRYAVTSEV/AFP via Getty Images) Customers visit the former Zara clothing brand flagship store, which reopened today under new branding Maag, in Moscow, on April 26, 2023. - Zara-owner - Spanish fashion retailer Inditex halted its operations in Russia and later sold its business to the United Arab Emirates-based Daher group following Moscow's military action in Ukraine.

Because it dries quickly and is strong, polyester, a byproduct of the petroleum industry, is frequently used in sportswear.

At a business event in Zaragoza, Spain, Inditex CEO Oscar Garcia Maceiras said that the company had signed an offtake agreement under which it would purchase 70 percent of Ambercycle's output of recycled polyester, sold under the brand name cycora, over the course of three years.

Lessening Its Environmental Impact

In addition to collaborating with other businesses and start-ups, according to Garcia Maceiras, Inditex is searching for methods to lessen the environmental effect of its goods through its innovation hub.

The money from Inditex will help Ambercycle finance the construction of its first facility for commercial textile recycling. The factory is anticipated to start producing cycora in 2025, and over the next three years, Inditex Goods will employ the material.

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A New Capsule Line

Men's sporting sub-brand Zara Athleticz debuted a capsule line of "technical pieces" featuring up to 50% cycora on Wednesday. According to Inditex, Zara.com would sell the line.

Some clothing companies have shifted from virgin polyester to recycled polyester made from plastic bottles in an effort to lessen their dependency on it, but this move has drawn criticism because it has increased the demand for old plastic bottles and driven up prices.

However, textile-to-textile polyester recycling is still in its infancy and will take some time to develop to the level needed by major fashion manufacturers.

The Ambercycle purchase is the most recent in a line of investments Inditex has made in start-ups engaged in textile recycling.

Last year, it agreed to a three-year, 100 million euro contract to purchase 30% of the recovered fiber made by Finland's Infinited Fiber Co. It also made an investment in Circ, another American company specializing in textile-to-textile recycling.

As the industry gets ready for EU regulations mandating member states to separately collect textile trash starting in January 2025, Inditex has partnered with rivals like H&M and Mango in Spain to handle garment waste.

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