MADRID Zara owner Inditex, the world's largest clothing retailer, said on Friday its suppliers would buy 2,000 metric tons of a raw material made out of cotton textile waste by Swedish company Renewcell.

Renewcell is one of the world's first commercial-scale textile-to-textile recycling factories that helps clothing retailers to replace virgin fibres with recycled textiles.

Inditex, which like other fast-fashion retailers is under pressure to reduce waste and use recycled fabrics, earlier this week, signed a deal to buy recycled polyester from a U.S. startup. The Spanish company intends to source 25% of its fibres from "next generation" materials by 2030.

Inditex placed 621,244 tons of garments on the market last year, according to its annual report.

Renewcell produces a textile pulp made from cotton waste recycled in a chemical process, and is branded as Circulose.

Levi Strauss has already signed a deal with Renewcell to buy Circulose to make one of its blue jean pants, adding it to organic cotton.

Swedish retailer H&M also agreed in 2020 to use Circulose material across its brands over a five-year period, Renewcell says on its website.

Renewcell said earlier this month it had sold around 14,400 tonnes of Circulose as of the end of September.

(Reporting by Corina Pons; Editing by Inti Landauro and Mark Potter)