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SUSTAINABLE AND CIRCULAR ECONOMY BUSINESS MODEL FOR TOWELS WITH MULTIPLE LIFES USING A TAKE-BACK SYSTEM

Project description

One towel, multiple lives

On average, fitness centres are required to restock about 80 % of their towel supplies each year, incurring significant costs in waste management. ARPE's innovation breaks that model, selling microfibre towels with a purchase back option after their usable live to recycle them into cleaning cloths. A first demonstration with key stakeholders had 100 kgs of end-of-life towels turned to 2 500 cleaning cloths. By those estimates, ARPE expects to market around 48 million towels a year, or else EUR 98 million for the primary market. Production of cloths as second-live product is estimated to double ARPE's market potential, reaching EUR 176 million. The ARPE-CIRCULAR-TOWEL model is expected to contribute to more sustainable modes of industrial production.

Objective

Fitness centers need to replace about 80%Fitness centers need to replace about 80% of all towels they have in stock every year which costs both replacement and waste management. ARPE’s innovation is a game-changer business model integrating the life management of towels in fitness centers and other collectivities using a circular economy approach for delivering multiple life to the product and multiple economic valorization:
- Production and sale of polyester microfiber towels for collectivities (SALE)
- Recover those towels at the end of their life for recycling (TAKE-BACK)
- Refurbish the towel into a new product for other sectors (SALE)
- Potential for recycling the second product to fiber level and go back to fresh towel production (CIRCULAR RECYCLE)
ARPE made a first demonstration with key stakeholders with 100 kg of end-of-life towels to turn them into 2500+ cleaning cloths. Based on the first tests, we estimate a total European market in the order of 48 million towels a year or the equivalent of 98 million € for the primary market (towel sales). When taking into account the circularity of the process (taking back the initial product and refurbishing into a second product) the market potential is almost doubled to 176 million €.
We plan to assess the feasibility for the scale up of the ARPE-CIRCULAR-TOWEL model and its evolution from a product sale towards a “servitization” or towels-as-a-service business model.
The ARPE-CIRCULAR-TOWEL model will actively contribute to a more sustainable industrial production with reduced CO2 emissions, reduced water consumption and cost savings for all involved stakeholders and customers.
During the first 5 years of commercial exploitation we estimate total accumulated sales of 15.7M€ and accumulated profits of over 5.9M€. For that, ARPE will generate at least 10 FTE positions directly and our estimates are that could generate additionally 30 FTE indirectly, by means of subcontracting social risk exclusion and inmate work.

Call for proposal

H2020-EIC-SMEInst-2018-2020

See other projects for this call

Sub call

H2020-SMEInst-2018-2020-1

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Coordinator

MANUFACTURAS ARPE, SL
Net EU contribution
€ 50 000,00
Address
Calle can victoriano 12, poligono industrial torre puig
08358 Arenys de munt
Spain

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SME

The organization defined itself as SME (small and medium-sized enterprise) at the time the Grant Agreement was signed.

Yes
Region
Este Cataluña Barcelona
Activity type
Private for-profit entities (excluding Higher or Secondary Education Establishments)
Links
Other funding
€ 21 429,00