The massive manufacturing company from Sri Lanka has promised to buy enough raw materials from LA-based startup Ambercycle to produce about 10 million T-shirts.
In a deal that indicates increased supplier engagement with efforts to bring recycling innovations to market, Sri Lankan manufacturing behemoth MAS Holdings has committed to purchase 4,000 tonnes of recycled polyester from LA-based start-up Ambercycle over a three-year period. This is equivalent to about 10 million T-shirts.
The purpose of the agreement is to secure supply for MAS at a time when demand for circular materials is anticipated to rise due to new regulations and impending deadlines for brands to fulfill their own sustainability commitments, as well as to support Ambercycle’s goals to expand its textile-to-textile recycling capabilities.
The majority of recycled polyester on the market today is created from recycled plastic bottles, however businesses that convert used clothing into new materials, like Ambercycle, are generally seen as having a more ecologically friendly option.
Binding purchase agreements, such as the one between MAS and Ambercycle, are thought to be a vital step in facilitating the introduction of novel materials into the market. Increased participation from manufacturers is another. Large companies, such as Inditex, the parent company of Zara, and H&M Group, have committed millions of dollars to purchase a range of cutting-edge fibers in the upcoming years, but it’s far less common to see a supplier participating in such transactions.
According to MAS, the acquisition is well positioned to help the company reach both its own goals of having half of its revenue come from lower-impact goods by the end of the year and the rising demand from customers for recycled materials. Group director for sustainable business at MAS Nemanthie Kooragamage stated, “We want to not only collaborate, but invest and have skin in the game.”
