According to Reuters, Renewcell is one of the largest textile recycling companies in the world and it helps fashion brands replace virgin fabrics with recycled ones, a more sustainable alternative.

Inditex is one of the fast-fashion retailers that are constantly under pressure to reduce its impact on the environment, by adopting more eco-friendly materials. Earlier this week, the Spanish company announced that it will buy recycled polyester from a US-based startup, as Inditex officials intend to source 25% of the required fibers from "next-generation" materials by 2030.

As per Inditex's most recent report, last year, the company placed over 621.000 tons worth of fashion items on the market.

Renewcell Chief Executive Magnus Hakansson said that "a public agreement to purchase any amount of fibers made with Circulose is positive in our view. It signals to the rest of the market that Inditex is actively pursuing its goal to source and use more next-generation materials."

For the group's next collection, officials of the Spanish company said that they will supply themselves with Circulose, as well as sustainably-made cellulose.

American fashion brand Levi Strauss also signed a deal for Renewcell's Circulose, which will be blended with organic cotton to manufacture one of the company's models of blue jeans.

Renewcell officials claim that the company so far sold some 14.400 tons of Circulose.