upcycle

:  to recycle (something) in such a way that the resulting product is of a higher value than the original item :  to create an object of greater value from (a discarded object of lesser value) The line upcycles single-use plastic bags that are cleaned and brought in from Bali, Indonesia, and parts of California for use as the main material in the shoes. In the company's first year more than 175,000 plastic bags were reused to create footwear and accessories. — Melissa Magsaysay