Eton Systems, a member of TMAS, the Swedish Textile Machinery Association, is participating in the Microfactories System Innovation project. The initiative aims to develop a fully automated workflow for second-hand garments to support the rapidly expanding reuse market.
Eton is providing its proven material handling transport system to the project. The initiative also includes experts from the Swedish School of Textiles in Borås, Automation Region at Mälardalen University, and the national collaboration platform iHubs Sweden.
High Market Growth
According to ThredUp’s 2025 Resale Report, the global second-hand apparel market has reached $256 billion in 2025. It is growing at 10% annually, with predictions of hitting $367 billion by 2029.
Additionally, the online resale segment is expected to double within five years to nearly $40 billion, growing at 17% annually.
“The volumes are now so large that handling must be automated for it to work,” says Jan Molin, CEO of Eton Systems. “The new EU regulations requiring separate collection of textiles are having an impact, but we are also seeing an increasingly positive attitude towards reuse and greater awareness of the textile industry’s environmental impact.”
AI-Powered Categorisation and Pricing
A test facility is now being established at Science Park Borås. Garments are placed on custom product carriers within an Eton Systems conveyor and transported through multiple inspection stations.
A vision system evaluates each product, and AI categorises items based on brand, model, and size. It also analyses damage and recommends potential repairs. The system then calculates an ideal sales price based on market data. Finally, the garments are photographed and moved to storage before sale.
Automation Roots Dating Back to the 1960s
Eton’s UPS material handling system was originally developed in the 1960s for shirt production in Gånghester, near Borås. At the time, manual handling accounted for up to 80% of production time.
The automated ceiling-mounted conveyor allowed the transition from mass to single-item production. Benefits included faster throughput, reduced labour handling, improved ergonomics, and early defect detection.
The success led to the establishment of Eton Systems in 1967. Today, the company manufactures its technology in Nordskogen, Borås and supplies global customers across clothing, home textiles, furniture, and even automotive plastics.
Supporting Circular and Localised Manufacturing
The Microfactories System Innovation project builds on earlier initiatives centred on small-scale, needs-based production. Now the focus shifts toward reuse and circularity.
“We see enormous potential in second hand,” Molin says. “It is an area that is growing rapidly and where there is room for innovation and new business models. There is also the opportunity to move technology from other industries.”
The four-year project began in 2024 and allows Eton to explore new applications and build innovation capacity.
“Collaboration with universities and innovation environments helps us to be at the forefront,” Molin adds. “But above all, it is about contributing to a more circular industry, where materials can be used for longer and in a smarter way.”
Enabling Sustainable Circular Systems
“It’s very encouraging to note this growing willingness by many consumers to embrace the second-hand market as an important component of the drive towards accelerating circular systems,” says TMAS General Secretary Therese Premler-Andersson. “Automation and digitalization as developed by Swedish companies like Eton are increasingly innovating ways in which this market – and more generally textile manufacturing and retailing – can be sustained and made ever more efficient in the general fight against textile waste.”
The project is funded by the European Regional Development Fund, the Swedish Agency for Economic and Regional Growth, Region Västra Götaland, and Region Västmanland.
