Repsol Foundation acquires 14% stake in the leading textile recycling company Coleo

Repsol’s chairman, Antonio Brufau, and Coleo’s CEO and founding partner, David Puyuelo, have formalized an investment agreement wherein the Repsol Foundation acquires a stake in Coleo’s recycling division, known as Coleo Network. This Spanish company is recognized as a leader in circular transformation within the textile sector.

Source: Repsol

The Importance of the Textile Sector

The textile industry is crucial for both Spain and Europe, generating over 7 million tonnes of textile waste annually. Of this amount:

• Approximately 10% is recycled
• Between 20% and 25% is reused or exported, mainly to developing nations
• The remaining 65% to 75% is directed to landfills or incineration

Currently, the market for second-hand garment exports is facing significant saturation due to competition from Chinese firms, which offer lower-priced products. This competitive landscape complicates the export of that 20-25%, leading to an increased volume of European textile waste requiring further processing.

A Shift Towards Sustainability

The business model is transitioning to favor more sustainable production, with Spain leading this transformation in Europe. This initiative is a long-term project that necessitates collaboration across sectors and society, as exemplified by the agreement established today between the Repsol Foundation and Coleo.

With this partnership, the Repsol Foundation now holds stakes in five positive triple-impact companies, thereby contributing to a sustainable and inclusive energy transition.

Coleo Network: A Leader in Textile Circularity

Coleo Network is part of the Spanish group Coleo, which is at the forefront of textile circularity in Europe. The group is dedicated to transforming the textile industry into a more sustainable, socially responsible, and environmentally friendly model. It employs industrial processes that add new value to used garments and develops circular solutions ranging from waste management to industrial recycling, including the production of recycled fibers, fabrics, and garments.

Coleo Network is actively constructing a European network for the management and recovery of textile waste. By utilizing proprietary technology and innovative industrial processes, Coleo aims to create a viable economic model for waste recovery.

With three waste management plants in Spain (located in Galicia and Catalonia) and another in Toulouse, France, Coleo is positioned for further expansion, especially with the Repsol Foundation joining as a shareholder.

Commitment to Social Integration

From its inception as waste managers, Coleo has prioritized social integration and job creation. Having established a successful model in collaboration with various associations, the company employs individuals from groups at risk of social exclusion at each of its facilities. Currently, over 50% of the workforce at their plants comprises individuals from these groups.

The Repsol Foundation: Supporting Triple-Impact Companies

The Repsol Foundation has taken the lead in directly supporting companies that facilitate a sustainable and inclusive energy transition, generating a positive “triple impact” on society, the environment, and business. This strategy is implemented across four key areas:

• Emissions reduction and offsetting
• Circular economy
• Energy efficiency
• Sustainable mobility

In addition to Coleo Network, the Repsol Foundation, through its investee company Repsol Impacto Social, holds stakes in other companies with a positive “triple impact.”