Syre, the joint venture between fashion giant H&M Group and Swedish investor Vargas Holding (founded by Harald Mix), has unveiled its first three major clients beyond its founding partners — notably including two American retail giants, Gap and Target.
Global Retailers Join the Circular Textile Revolution
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According to Dennis Nobelius, CEO of Syre, the first commercial shipments are scheduled for 2026 following initial technical delays.
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Gap has committed to purchasing approximately 10,000 tons of recycled polyester annually.
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Target will integrate Syre’s recycled polyester into selected collections (quantities undisclosed).
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The third client, Swedish outdoor apparel brand Houdini, has pledged to source 50% of its polyester demandfrom Syre over the next three years.
These companies are not just buyers but “launch partners”, contributing to product development and supply chain integration as Syre scales up its global operations.
Breakthrough Recycling Technology
Polyester remains the world’s most widely used synthetic fiber, largely derived from fossil fuels, with recycling still at a limited scale — mostly from PET bottles.
Syre’s innovative glycol-based chemical recycling process breaks down textile waste into monomers, which are then repolymerized into virgin-quality polyester.
This method reportedly reduces CO₂ emissions by up to 85% compared with conventional polyester production.
Pilot Operations in the U.S. Before Global Expansion
Syre is finalizing a pilot plant and R&D center in North Carolina, USA, with a capacity of 10,000 tons per year, in collaboration with Portuguese polymer producer Selenis.
Operations are slated to begin by the end of 2026, after which Syre aims to establish 12 full-scale industrial plants worldwide, with a combined annual capacity of 3 million tons of recycled polyester — starting with Vietnam in 2027.
Vietnam Chosen as Syre’s First Global Production Hub
Vietnam has been selected for Syre’s first large-scale plant due to its strategic role in the global garment supply chainand H&M’s strong supplier network in the country.
According to H&M Group’s latest supplier data, Vietnam ranks among its top five sourcing markets, hosting over 40 partner factories from Hanoi to Ho Chi Minh City, focusing on textile manufacturing and garment finishing.
The Vietnam plant will operate on a modular, scalable model, with capacity equal to or higher than the U.S. facility. It aims to produce recycled polyester both for domestic sustainable textile needs and exports to Europe and the U.S., aligning with rising international requirements for supply chain transparency and low-emission materials.
This marks a pivotal move for H&M and Vargas toward building a global circular textile ecosystem, while also opening new opportunities for Vietnam to participate in high-value material recycling technologies.
Strong Financial Backing and Strategic Vision
In 2023, Syre successfully raised 1.1 billion SEK (approx. USD 100 million) from leading investors such as TPG Rise Climate (U.S.), Giant Ventures (U.K.), Norrsken (Sweden), IMAS Foundation (affiliated with IKEA), Volvo Cars, and Leitmotif (backed by Volkswagen).
Despite the bankruptcy of Northvolt (another Vargas-backed company) in March 2025, Syre emphasized that it remains unaffected due to different business models and financial structures.
“We’ve learned from Northvolt — to scale responsibly, step by step, without rushing,”
said CEO Dennis Nobelius, highlighting Syre’s careful and methodical approach as it prepares to break ground in Vietnam.