The EU’s legal guidelines concerning circular economy present a great challenge for the SME dominated textile industry of Austria. In order to close the loops a project has been installed to develop a treatment for the recycling of textile waste. For this purpose 3 case studies were defined. These case studies come from the type of textiles used by one part of the project partners res. from the demands of the users of the recycled material. The three case studies: Case Study 1&2: These case studies focus on the treatment of textile waste from blended fabrics made from cotton and PET (from towels, etc). In order to obtain the pure PET from this blend an enzymatic process was developed. In this process a carefully selected range of enzymes are used to downgrade the cotton. This process contains also a specially designed pre-treatment as well as a post- treatment. The purpose of the pre-treatment process is to loosen up the cotton fibres to make them more accessible for the enzymes. The purpose of the post treatment process is to remove all residue and leave an as much as possible pure PET. First spinning trials showed that the rPET is still suitable for spinning. Weaving trials are to follow. Case Study 3: Here various PA-types and blends were examined. They come from industrial textiles like fleeces and sieves for the paper and cement industry. The task here was to examine the suitability of the fibre material for injection moulding. The demands on the processing properties and on the material properties of fibre material and injection moulding material are very different. First analyses like DSC, MFR, and injection moulding trials showed that the recycled PA blends are promising for the use in technical parts. The next steps will be to perform compounding trials using various types of additives in order to improve the mechanical properties. For optimal results and a systematic examination of these results a DOE is formulated.