Loan Support from Proparco for Sanko’s Textile Recycling Initiative RE&UP
Sanko Group has taken an important step towards becoming one of the world’s largest textile-to-textile recycling companies. Proparco has granted a concessional loan to RE&UP Recycling Technologies, Sanko Group’s textile recycling venture. The €70 million loan will expand RE&UP’s textile recycling capacity in Gaziantep.
Proparco, a subsidiary of AFD Group focused on private sector development, provides funding and support to both businesses and financial institutions in Africa, Asia, Latin America, and the Middle East. With over 120 years of industry experience, Sanko Group continues to be an important partner for Proparco.
Proparco, which previously gave Sanko Group a loan of 37 million euros in 2021, gave its second loan. The first loan of 37 million euros was used for sustainable investments and job creation within the Group’s textile subsidiary in 2021. This significant investment will help RE&UP set a new standard for circularity in the textile sector by reducing both carbon and water footprints while increasing RE&UP’s capacity to scale up the production of Next Generation recycled fibers.
Full Contribution to Green Transformation
In 2023, the textile industry accounted for 10% of global emissions, and fashion sales are expected to grow by +25% between 2016 and 2030. Decarbonization pathways for the textile industry are mostly based on decarbonization, energy supply, and recycling initiatives. RE&UP’s new investment will use electricity generated from 100% renewable energy sources, thus fully contributing to the industry’s green transformation.
Textile to Textile Recycling Factory to be Established
The investment will support RE&UP to expand its capacity by building a new textile-to-textile recycling plant in Gaziantep with equipment including the installation of rooftop solar panels with a capacity of 8.4 MW for self-consumption.
“This signing represents a unique opportunity to strengthen our partnership with one of Turkey’s most forward-thinking and sustainability-oriented companies. Over time, Sanko has demonstrated its commitment to environmental innovation. Working with RE&UP Recycling Technologies , which the Sanko Group supports in the textile recycling sector, allows us to support Sanko’s participation in Turkey’s carbon-neutral path, increase employment opportunities, and build resilience in the Gaziantep community, which is facing significant challenges following the recent earthquake.”
Proparco Regional Director Stéphane Froissardey; “As Proparco, we are proud to support RE&UP Recycling Technologies, supported by Sanko Group, in their textile recycling investments that will have a greater impact on the decarbonization of the industry. The project will also serve the dissemination of circular business models in an environment where social awareness and expectations on the subject are increasing. This second transaction with Sanko Group’s circular technology initiative RE&UP has sealed the strong relationship and common understanding between both parties for a more sustainable future.”
“We are deeply grateful for Proparco’s continued support and investment in our vision of a more sustainable future,” said Fatih Konukoğlu, Vice Chairman of Sanko Holding and Chairman of RE&UP Recycling Technologies. “This new investment will significantly increase RE&UP’s next-generation recycling fiber production and ability to increase textile recycling capacity to 1 million tons by 2030, and in doing so we aim to set a new standard for circularity in the textile industry. This partnership not only strengthens our commitment to reducing environmental impact but also reaffirms our strong relationship with Proparco, moving us forward as a leader in pioneering circular economy solutions. Together we are paving the way for a transformative, greener future in our industry.”
Investment from Sanko to Spain
On the other hand, Sanko Group plans to open a new recycling plant in Spain, which has a reputation as a textile recycling center. Re&Up, the textile recycling arm of Sanko Group, has started negotiations in Spain to establish a factory that can recycle textile wastes within the scope of the project. The project is expected to be financed by loans, private investments, and European Union funds. Information obtained from industry sources suggests that Castilla La Mancha, Valencia, and Madrid are being considered as locations for the plant. The company will enter the Spanish market independently, where it will process both pre-consumer and post-consumer waste. However, it will especially focus on post-consumer. After deciding on the location, Re&Up plans to complete the construction of the facility between 14 and 18 months. It will leave a physical mark on the fibers obtained after the recycling processes for traceability.
Headquartered in the Netherlands and holding more than 330 recycling patents, Re&Up mainly operates in Turkey.
