All textile waste in Estonia to be recycled soon

TALLINN - A new industrial site the size of two football fields is being established in the Sillamäe Industrial Park in northeastern Estonia, featuring factories that will sort and recycle all textile waste generated in Estonia.

The facilities will process higher-value textiles into fibers for reuse and lower-value waste into competitive construction materials for domestic and export markets. The total investment is approximately 100 million euros, with 39 million euros funded by the Just Transition Fund through the Estonian Business and Innovation Agency.

Infrastructure Minister Vladimir Svet said that this investment is crucial, as all municipalities are now required to organize separate collection of textile waste.

"Textile waste is among the most difficult to process, and Europe is actively seeking solutions to recycle it on a large scale. We can be proud that our local entrepreneurs have taken on this challenge, supporting waste reform goals while creating much-needed jobs in East-Viru County," Svet said.

Three companies will manage the recycling, working as part of an integrated production chain where one factory's output serves as raw material for the next. A key partner in the project is Greenful Group OÜ, through Greenful Holding B.V., which has developed innovative Greenful construction boards.

The company Tekstiili Taaskasutus OÜ aims to establish the largest textile waste collecting, sorting and shredding facility in the Baltic and Nordic regions. Valuable materials will be recycled, while lower-quality textiles with high synthetic content will be processed by Greenful Sillamäe OÜ.

"Estonia generates approximately 20,000 tons of textile waste annually, all of which Tekstiili Taaskasutus OÜ will sort. Additionally, textile waste will be imported from neighboring countries, with a maximum annual capacity of 70,000 tons. About half of the sorted textiles will be shredded and supplied to Greenful Sillamäe OÜ, while the rest will be sold as recycled fiber locally and internationally," Kalle Grents, management board member of Tekstiili Taaskasutus OÜ, said.

Greenful Sillamäe OÜ plans to use the lowest-grade textile waste to produce construction boards. These boards will consist of approximately 50 percent textile fibers, 35 percent granulated polypropylene plastic waste, and 15 percent additives. Plastic waste will be sourced from companies such as Veolia Environment and Lyondellbasell Industries.

A portion of Greenful Sillamäe's boards will be supplied to Greenful SIP OÜ, which will use them to produce structural insulated panels (SIPs). These panels feature a sandwich structure with an insulating foam core and recycled textile-plastic boards on both sides. Initially, PUR foam will be used as insulation, but research is underway to replace it with cellulose-based green foam.

The SIP panels are ideal for modular housing construction, which has gained popularity in recent years. The panels can be used in multiple ways, including as load-bearing walls, exterior facades, and interior panels.

While some panels will be used in the local construction market, Greenful SIP OÜ sees the Baltics and Nordic countries as key export markets due to their demand for high-quality insulation materials and strong emphasis on circular economy solutions.

The Just Transition Fund will provide 13 million euros to each company involved, totaling 39 million euros. The entire project investment is approximately 100 million euros.

If everything proceeds as planned, the factories will begin production by the end of 2026. The three facilities will cover approximately 1.5 hectares and are expected to create around 150 jobs.