The project aims to create a groundbreaking collaboration between the textile and automation industries to develop microfactory concepts that offer sustainable, flexible and resilient solutions for small and medium-sized enterprises (SMEs). Integrating the strengths of both sectors increases the sustainability and competitiveness of Swedish industry. Our approach is based on interregional collaboration, innovation through microfactories for circular ecosystems, system innovation and strategic communication. Through activities that involve the use of new technologies in industrial processes, sharing best practices, and targeted communication, we want to achieve a pattern-forming collaboration that creates system innovation. We will give companies better conditions to adapt to a changing market, reduce environmental impact and strengthen their position through innovative and sustainable production methods. The project will result in an increased understanding, which will enable a more resilient and competitive Swedish industry.