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Textile revolution: Estonia launches €100 million project to transform recycling

Toomas Allikas, Greenful Group, textile recycling

Toomas Allikas, Founder & CEO of Greenful. Photo: private archive

A textile recycling complex is being planned for the eastern Estonian town of Sillamäe. When open, it will be the largest of its kind in the Nordic-Baltic region, turning old clothes into construction materials, handling 70,000 tonnes of textile waste yearly.

Three companies, Tekstiili Taaskasutus OÜ, Greenful Sillamäe OÜ and Greenful SIP OÜ, are setting up an integrated textile recycling and manufacturing complex in Sillamäe, Estonia’s northeastern industrial centre. The complex is scheduled to begin operations in late 2026. The total investment is €100 million, of which €39 million is provided by the EU Just Transition Fund through Enterprise Estonia.

The facility will sort and process all clothing and textile waste generated in Estonia. The more valuable materials will be recycled into the textile fibre, while the less valuable ones will be used to create construction materials for the Estonian market and export.

The largest textile recycling complex in the Nordics will be in Estonia

Three companies will collaborate to process textile waste, with the output from one factory serving as raw material for the next in the chain. The facility will be the largest of its kind in the Nordic-Baltic region.

“As a small country, we have gained recognition as leaders in digital topics. With our production processes that use waste in various ways in Ida-Virumaa, we also aim to become leaders in the circular economy.”
Sigrid Harjo, a board member of the Enterprise Estonia

Greenful Group OÜ, an Estonian company, is a shareholder in all three companies through Greenful Holding B.V. The founder and CEO of Greenful is Toomas Allikas. The company developed the unique Greenful building boards through extensive research and development.

Minister of Infrastructure Vladimir Sveti emphasised the importance of upcoming investment, noting that all municipalities must implement separate textile waste collection. “Textile waste is one of the most challenging types of waste to process, and Europe is currently seeking solutions to manage it in large quantities effectively. We should be proud that our local entrepreneurs have embraced this important challenge, supporting the objectives of the waste reform. This initiative will also create several crucial jobs in Ida-Viru County.”

Textile fibres will become construction boards

Tekstiili Taaskasutus OÜ plans to establish the largest waste collection, sorting, and shredding centre in the Baltic and Nordic regions. During sorting, valuable materials will be directed for reuse, while lower-quality materials with a high synthetic fibre content will be sent to Greenful Sillamäe OÜ for production.

“Approximately 20,000 tonnes of textile waste are generated annually in Estonia, all of which will be sorted by Tekstiili Taaskasutus OÜ. Additionally, textile waste will be imported from neighbouring countries, with the centre’s maximum annual capacity reaching 70,000 tonnes. About half of the sorted textiles will be supplied shredded to Greenful Sillamäe OÜ, and the other half will be sold as textile fibre for reuse in Estonia and abroad,” said Tekstiili Taaskasutus OÜ board member Kalle Grents.

Greenful - textile recycling

Greenful Sillamäe will start to produce construction boards from low-quality textile residues. Photo: Greenful Group

Greenful Sillamäe OÜ then plans to manufacture construction boards from the lowest-quality textile sorting residues. In addition to textile waste fibres 3-5 millimetres in diameter, the company will also use polypropylene plastic waste granules as raw material for these boards. The board will be composed of approximately 50% textile waste fibers, 35% waste plastic, and 15% additives.

In turn, international companies such as Veolia Environment and LyondellBasell Industries will supply the granulated plastic waste needed for board production.

Estonia aims to become a leader in the circular economy

According to Markus Hääl, a member of Greenful Sillamäe OÜ’s board, the company will sell one-sixth of its production to Greenful SIP OÜ, which will use the boards to manufacture SIP panels. “The remaining production will be sold to business clients in Estonia and on the international market,” Hääl added.

Greenful SIP plans to produce sandwich-type construction panels from the boards, with insulation foam in the middle and panels made of recycled textiles and plastic on both sides. The panels will be suitable for building modular homes and can be used as load-bearing walls, exterior facades, or interior panels.

“Approximately 20,000 tonnes of textile waste are generated annually in Estonia, all of which will be sorted by Tekstiili Taaskasutus OÜ. Additionally, textile waste will be imported from neighbouring countries, with the centre’s maximum annual capacity reaching 70,000 tonnes.”
Kalle Grents, Tekstiili Taaskasutus OÜ board member

Tõnu Puidak, board member of Greenful SIP OÜ, said the company has signed preliminary agreements to retail its products both in Estonia and abroad. “Companies which value sustainable construction are interested in purchasing SIP panels largely made from recycled materials,” he added.

According to Sigrid Harjo, a board member of the Enterprise Estonia, this project is extraordinary as it combines innovative technological solutions with a commercial focus and a smart production chain. “Not only does this project support regional development, but it is also innovative internationally. As a small country, we have gained recognition as leaders in digital topics. With our production processes that use waste in various ways in Ida-Virumaa, we also aim to become leaders in the circular economy.”

The three factories are expected to occupy approximately 1.5 hectares and employ 150 people.

This content is funded by the European Union – NextGenerationEU

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