
Estonia to build largest textile recycling facility in the Baltics with €100M investment
Estonia is set to become a leader in sustainable textile recycling with the construction of the largest textile recycling facility in the Baltics. Located in Sillamäe, the €100 million project aims to process up to 70,000 tonnes of textile waste annually by the end of 2026, including imports from neighboring countries.
A significant part of the investment—€39 million—comes from the EU’s Just Transition Fund, funneled through Estonia’s Enterprise and Innovation Foundation (EISA). The project is a collaboration between Eesti Keskkonnateenused, Greenful Group, and Tekstiili Taaskasutus OÜ.
The new facility will focus on converting textile waste into valuable products, including shredded textile fibers. These fibers will be used to produce construction boards and panels, which will incorporate 50% recycled textile fibers, 33% polypropylene plastic waste, and 15% additives. The resulting boards will be used in the construction of modular homes and other building applications.
The ambitious project will span three interconnected facilities covering 1.5 hectares and is expected to create 150 new jobs in the region. With Estonia alone generating around 20,000 tonnes of textile waste each year, this initiative will significantly reduce waste while contributing to the circular economy.
As the textile recycling sector faces challenges with fiber-to-fiber recycling, this new approach of repurposing textiles into construction materials may become more common, offering a promising solution to sustainability challenges in the industry.
This project marks a critical step toward increasing the recycling capacity of the region and transforming waste into a resource that benefits both the environment and the local economy.