In Alicante, a fresh capital injection of 95 million euros is propelling a bold move by a textile company focused on recycled cotton. Founded in 2020, Ferre Yarns decided to separate this segment of the business, acquiring 80 percent of the share capital to accelerate growth. The initiative is being led by Alfredo Ferre, who outlined a plan to deploy the funds to speed up expansion and scale production capabilities across new markets.
The new funding round was headed by a sustainable investment entity, with Goldman Sachs participating alongside Story3, contributing a total of 100 million dollars in exchange for the 95 million euros investment. Industry sources quoted by the Wall Street Journal valued the Alicante-based firm at roughly 1,100 million dollars, about 1,050 million euros.
The company aims to produce 350,000 tons of recycled cotton fiber by 2026, a milestone tied to a major expansion strategy. As a first step, the Mariola Banyeres facility was doubled, and a new plant was opened this year. Additional facilities were planned in Pakistan, two in Bangladesh, and further sites in Vietnam, reflecting the ambition to establish a global footprint.
Ferre has emphasized the goal of creating factories near the world’s leading fashion hubs. These facilities would process discarded textiles and used clothing as the primary raw material, with fabrics supplied by these plants serving as both ornament and input. An option to establish a factory in Central America was also under consideration, though a location and exact timeline had not been announced.
Recover from Alicante will open its first factory abroad in Bangladesh
The company already counts some of the world’s most prominent fashion retailers among its clients, including Primark, Inditex, C&A, Revolve, and Lands’ End.
Hilaturas Ferre began by recycling cotton fibers, a response to material shortages faced decades ago. Over time, the firm refined the technique and ultimately launched the brand in 2006 to produce threads that do not require re-dyeing because they inherit the colors of the original fabrics. This approach aligns with current movements toward sustainability in fashion.
An efficient process is now touted for saving thousands of liters of water in cotton yarn production. This efficiency has attracted attention from investors and industry observers who see a path toward a more sustainable textile supply chain. The Story3 fund’s decision to engage the Alicante company reflects a strategy to create a multinational group centered on recycled textile fibers and sustainable production practices.
The current injection from Goldman Sachs and Story3 is enabling an accelerated timetable for expansion, with plans to scale manufacturing capacity, broaden geographic reach, and strengthen the company’s position in a market hungry for sustainable textile solutions. The aim is clear: to build a global network of recycling facilities that support responsible fashion across continents and supply chains.