Swedish textile recycler Renewcell has said that it has reduced its production capacity in light of a lack of sales during the month of November.

The company said that it generated just 1,339 metric tonnes of Circulose pulp material during the period, whereas its total production output at its facility was 1,420 tonnes. “No metric tonnes were delivered to customers,” the company added.

As a result, Renewecell stated that it has decided to reduce its production capacity “in order to not negatively affect cash flow.” Its December prognosis is likewise bleak, with production output likely to stay below capacity “due to expected lower sales volumes.”

Renewcell released its third-quarter financial results earlier this month, with net sales for the three months to September totaling 84.4 million Swedish krona and operating profit falling to 50.5 million krona.

The poor results corroborated what Renewcell predicted in its October guidance update, when it indicated that it was seeing a slower-than-expected flow of cellulose pulp fibre throughout the value chain.

While there was interest from fibre manufacturers, the company’s acting CEO, Magnus Hkansson, who was appointed to the job in early October, stated that certain off-take agreements had not yet been converted into orders due to delayed production.

He decided that Renewcell will maintain control of cash flow during this period while focusing on increasing sales and securing demand from brands and fibre producers.