Sanko Group’s nascent circular textile recycling venture Re&Up Recycling Technologies just received a 70 million euro (roughly $76 million) senior loan from Proparco, a subsidiary of the French Development Agency (AFD) that promotes private investment in Africa, Asia, Latin America and the Middle East to reach the United Nations Sustainable Development Goals (SDG).
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“This unique opportunity…strengthens our partnership with one of Turkey’s most forward-thinking and sustainability-oriented companies,” said Rémy Rioux, CEO of the AFD Group. “Over time, Sanko has demonstrated its commitment to environmental innovation. Working together with Re&Up Recycling Technologies backed by Sanko Group in the textile recycling industry allows us to support Sanko’s involvement in Turkey’s carbon-neutral path , increase employment opportunities and foster resilience in the Gaziantep community, which is facing significant challenges following the recent earthquake .”
This loan will enable the recycling startup to scale its next-gen recycled fiber production and increase its textile recycling capacity while reducing its carbon and water footprint. Re&Up currently operates through two factories in Turkey : one in Bursa for recycling polyester and one in Gaziantep for recycling cotton. The investment will support Re&Up in building a new textile-to-textile recycling factory, also in Gaziantep, complete with installing 8.4 megawatts (MW) capacity rooftop solar panels for self-consumption.
It’s also Proparco’s second loan to Sanko. The first loan—roughly $40 million—was provided in 2021 for sustainable investments and job creation within the group’s textile subsidiary.
“We, as Proparco, are proud of supporting Re&Up Recycling Technologies backed by Sanko Group in their textile recycling investment through which amplified effects on the decarbonization of the industry will be achieved,” said Stéphane Froissardey, regional director of Proparco. “The project will also serve to promote circular business models in an environment where social awareness and expectations on the topic are also increasing. This second transaction with Sanko Group, through its circular-tech venture Re&Up, has sealed the strong relationship and common understanding between both parties toward a more sustainable future.”
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Through six steps, the company provides customers with a closed-loop ecosystem for their end-of-life textile waste. Re&Up collects waste from various sources—including pre- and post-consumer waste—and sorts it according to its composition before preparing it for mechanical or chemical recycling . Various manufacturing industries repurpose some of the processed waste, while the other portion becomes recycled cotton , recycled polyester chips and yarns for new products.
With Re&Up, Sanko Group aims to scale recycling for profit and recycle 1 million tons of textile waste through the platform by 2030.
“This partnership not only strengthens our commitment to reducing environmental impact but also reaffirms our strong relationship with Proparco, propelling us forward as leaders in pioneering circular economy solutions,” said Fatih Konukoglu , vice chairman of Sanko Holding and chairman of Re&Up Recycling Technologies. “Together, we are paving the way for a transformative, greener future in our industry.”
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