Textile waste is transforming from an environmental burden into a 'second mine' for the industry. A billion-yuan project in Jiangling, Jingzhou, reveals the scalable path: collection networks reaching township levels, chemical recycling technology closing the loop, and government-enterprise collaboration solving the chronic 'scattered and inefficient' problem.
The Logic Behind the Billion-Yuan Investment
In late March 2026, Hengyi Group officially broke ground on its 1-million-ton green recycled materials project in Jiangling Development Zone, with a total investment of 10 billion yuan. This is not mere capacity expansion but targets the long-neglected raw material side of textile waste recycling. The project covers the entire chain from front-end collection to mid-end sorting and back-end deep processing.
Warehousing capacity is a critical enabler. Jiangling County plans 200,000 square meters of storage, with 100,000 already in use. The goal is to achieve static storage of 400,000 tons and dynamic turnover of 1 million tons within the year. For buyers, this means a more stable supply of recycled raw materials, no longer dependent on scattered, unpredictable waste sources.
Breaking the 'Last Mile' in Collection
Textile waste collection has long suffered from being scattered, inefficient, and poorly managed. Hengyi's partnership with Jingzhou Post offers a replicable solution: leveraging the postal network's extensive coverage to extend collection reach to towns and villages. In January 2026, Jianli Post signed on, linking 314 grassroots outlets; in April, Shishou followed. Meanwhile, the supply-and-marketing cooperative system joined, building a three-tier standardized collection network at county, township, and village levels. The city now has 1,792 collection stations, with smart recycling devices enabling scan-and-redeem services.
The core advantage is reduced marginal cost. The postal delivery network originally served letters and parcels; by overlaying textile waste collection, logistics costs are diluted while collection volumes grow exponentially. Nationwide, nearly 13,000 collection points have been established, with over 7,000 in Hubei province alone. Daily collection exceeds 2,000 tons, with cumulative recovery reaching 200,000 tons.
Chemical Recycling: Breaking the Technical Bottleneck
Collection is only the first step; the real enabler is back-end processing technology. Hengyi's proprietary chemical recycling technology converts textile waste—through intelligent sorting, standardized storage and transport, and deep processing—into high-purity recycled raw materials. Compared to physical methods, chemical recycling can handle blended fabrics and dyed waste, producing raw materials closer to virgin fiber quality.
What does this mean for downstream fabric and garment companies? Higher purity allows recycled materials to be used more broadly in apparel, home textiles, and even industrial textiles, not just low-end fillers. Under carbon neutrality goals, brand demand for recycled fibers is rising, and scaled chemical recycling will directly lower procurement costs.
Government-Enterprise Collaboration: From Jingzhou to the Nation
This model is not isolated. The Jingzhou Municipal Commerce Bureau's 'Five Entries' campaign—into communities, schools, enterprises, nursing homes, and hotels—combined with the online 'Yi Recycling' WeChat mini-program, shifts collection from passive waiting to proactive pickup. Crucially, this model has been replicated across multiple regions, accelerating a scaled, regional development pattern.
Geographically, Jingzhou sits in central China near the Yangtze River, with broad logistics reach. Once the project is operational, it will serve not only local needs but also textile waste collection from surrounding provinces, forming a regional raw material hub. For textile companies long dependent on virgin synthetic fibers, this offers a cost-stable, traceable alternative.