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Published by: Stanford Business School
Originally published in: 2020
Version: 5 June 2020
Revision date: 27-Jul-2020

Abstract

Novetex, one of the world's largest single-site spinners, was celebrating the opening of its new spinning mill in 2018. The Hong Kong-based company had spent four decades expanding its operations, and its main factory was in Zhuhai, in southern China. But this new facility would be in Hong Kong, and would produce yarn from waste material in Hong Kong's textile and apparel industry. This case looks at Novetex's commitment to environmental sustainability, and efforts to become a leader in developing cleaner solutions by focusing on circular economy solutions within the global textile and apparel industry. Global clothing production had doubled within two decades, reflecting the rise of the middle class consumer in countries like China, and increasing sales in affordable fast fashion in mature economies. But the apparel industry was a top industrial polluter, accounting for 10 percent of global carbon emissions; the polyester and nylon textile industry, moreover, released about a half-million tonnes of plastic microfibers into the oceans each year. This case study looks at the evolution and risks of 'upcycling' technologies within the textile industry, and the science and partnerships behind the new Novetex Upcycling Factory in Hong Kong, which aimed to demonstrate the profitability and environmental sustainability of circular economy practices.

Time period

The events covered by this case took place in 2020.

Geographical setting

Region:
Asia
Countries:
Hong Kong; China

About

Abstract

Novetex, one of the world's largest single-site spinners, was celebrating the opening of its new spinning mill in 2018. The Hong Kong-based company had spent four decades expanding its operations, and its main factory was in Zhuhai, in southern China. But this new facility would be in Hong Kong, and would produce yarn from waste material in Hong Kong's textile and apparel industry. This case looks at Novetex's commitment to environmental sustainability, and efforts to become a leader in developing cleaner solutions by focusing on circular economy solutions within the global textile and apparel industry. Global clothing production had doubled within two decades, reflecting the rise of the middle class consumer in countries like China, and increasing sales in affordable fast fashion in mature economies. But the apparel industry was a top industrial polluter, accounting for 10 percent of global carbon emissions; the polyester and nylon textile industry, moreover, released about a half-million tonnes of plastic microfibers into the oceans each year. This case study looks at the evolution and risks of 'upcycling' technologies within the textile industry, and the science and partnerships behind the new Novetex Upcycling Factory in Hong Kong, which aimed to demonstrate the profitability and environmental sustainability of circular economy practices.

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Time period

The events covered by this case took place in 2020.

Geographical setting

Region:
Asia
Countries:
Hong Kong; China

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