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

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.