Skip to main content
invest in estonia

Chatbot

Estonia to get a €100M textile recycling complex

Estonia's getting a €100M mega-facility that turns old clothes into construction materials, handling 70,000 tonnes of textile waste yearly.

Every year, thousands of tonnes of old clothes and textiles end up in landfills across Northern Europe. Now, Estonia plans to tackle this problem with a new facility, reports ERR.

Three companies are setting up an integrated textile recycling and manufacturing complex in Sillamäe, Estonia’s northeastern industrial centre. The €100M project, backed by €39M in EU Just Transition Fund support, aims to transform textile waste into construction materials.

The facility, slated to begin operations in late 2026, will be the largest of its kind in the Nordic-Baltic region. It will process up to 70,000 tonnes of textile waste annually, with about 20,000 tonnes sourced from Estonia and the remainder imported from neighbouring countries.

The project brings together three interconnected operations:

  • Tekstiili Taaskasutus will handle waste collection, sorting, and initial processing. Higher-quality materials will be directed to textile reuse, while the remainder will be shredded for manufacturing.
  • Greenful Sillamäe will produce construction boards using an innovative mix of textile waste fibres (50%), recycled plastic granules (35%), and additives (15%). The company has secured supply agreements with major international recyclers, including Veolia Environment and LyondellBasell Industries.
  • Greenful SIP will manufacture sandwich-type construction panels, combining the recycled boards with insulation materials. The company is already developing more sustainable alternatives, including a cellulose-based foam to replace traditional PUR insulation. It will also begin seeking additional investors, targeting all kinds of strategic partners.

The investment is expected to create 150 jobs in Ida-Viru County, Estonia’s industrial heartland that is undergoing economic transition. It will also be heavily automated, benefiting from technological advancements in robotics and AI.

“This system can sort 28 different types of textiles, and if we wanted to, even by colour. The smallest piece the robot can handle is three by three centimetres,” says Greenful founder Toomas Allikas. “This production line is so innovative that small versions of it exist only in Belgium and Germany. A full-scale solution like ours hasn’t been built anywhere yet.”

The facility will occupy a 1.5-hectare site in Sillamäe’s industrial park. With EU support and established industry partnerships, it will demonstrate how industrial heritage can be leveraged for green manufacturing opportunities.

Yet more opportunities are open — Estonia has many industrial parks across the country open for all kinds of projects.

Read more about Just Transition Fund and reach out to our representatives to start your journey in Estonia.

News & events

Need more information?

Need more information?

What is it like to run a business in Estonia? How to benefit from the e-solutions and the efficiency of our business culture? What are the opportunities in specific sectors? Who to partner up with?

The Estonian Investment Agency’s team is happy to help you via its complimentary e-Consulting service, organize online or offline follow-up events such as virtual investment visits and guide you through the fairly simple process of investing in Estonia.

Request e-consulting