Most textiles consumed in Europe are produced abroad under weaker environmental and social standards, creating long supply chains, overproduction, and waste. ALADIN introduces a model for economically viable local-for-local textile and apparel production by making smart use of already existing infrastructure. It combines two core innovations: 1) Digital Platform offering design, customisation, orchestration, and Digital Product Passport services and 2) Network-Microfactory enabling regional, on-demand manufacturing and circular workflows. Built on new, renewable materials, R-strategy technologies, and regional collaboration, ALADIN integrates business models, new technologies & materials and networking to ensure scalability and uptake. Three use case products validate functionality and impact: a semi-automated T-shirt, a smart kidswear parka, and a circular blazer-dress, each targeting different user groups and involving specific competences. By 2029, ALADIN will deliver an integrated digital platform with an orchestrated network-microfactory, demonstrated across these three products. The consortium of manufacturers, researchers, and European hubs will reach TRL 6–7 by defining business, ecodesign, and R-strategy criteria, by developing and demonstrating the platform and networked microfactory production, and by establishing a clear pathway to uptake and exploitation. Impact will be scaled through Financial Support to Third Parties (FSTP), launching open calls: LAMP projects for SME-led digital and manufacturing innovations and CARPET projects for real-world validation. 20 projects will expand participation, validate results, and extend the network beyond the core consortium. ALADIN will demonstrate economic viability of on-demand production, accelerate SME uptake of advanced digital technologies, and increase re- and near-shored production made in socially and environmentally responsible ways, preventing overproduction and re-industrialising textiles in Europe.