Presently, textile industry is a huge contributor of global CO2 emissions and operates on a linear mode, rather than circular. The problem continues to grow due to overconsumption of clothing, limited reuse and lack of recycling of the discarded, non-reusable textiles. One obstacle for the recycling of textiles is that the suitable technologies do not currently operate at the required scale. PESCO-UP project, funded by the European Union, brings together partners across the textile recycling value chain to develop an economically and technologically viable process that enables the recycling of the mixed cotton/polyester (CO/PES) textile waste to be upcycled into cotton originated and polyester products. Valmet's role in the project is to develop scalable mechanical pre-treatment processes for the mixed post-industrial and -consumer textiles, as well as study optimal chemical separation technologies for cotton and polyester. In addition, Valmet will provide its expertise on development of overall process concepts for the treatment of CO/PES textiles, demonstration of the processes and end products as well as evaluation of the feasibility of the concepts, both from the technical and economical perspective. The presentation will highlight the progress of the project and some important learnings from a cross-organizational collaboration.