Sweden’s Syre Group, the textile impact company initiated by Vargas and H&M Group, plans to launch a high-tech polyester fibre recycling facility in central Vietnam by the end of 2028.

Binh Dinh province will host the gigascale facility, and Syre will invest around US$1 billion to process 250,000 tonnes of textile waste annually, converting it into raw materials for the garment and other industries.

Syre chairwoman Susanna Campbell meets Vietnamese Prime Minister Pham Minh Chinh in Hanoi on April 23. ( Vietnam government portal )

Calling on Vietnamese Prime Minister Pham Minh Chinh on April 23 in Hanoi, Syre Group co-founder and chairwoman Susanna Campbell said her company was creating a global circular textiles ecosystem through large-scale recycling hubs that will leverage advanced technologies and renewable energy. The goal is to establish major recycling complexes in strategic regions around the world, including Vietnam.

Campbell hailed Vietnam’s robust green transition, noting that the Southeast Asian nation would become one of the global leaders in circular economy development.

Priority for local sources 

The company is proposing a direct power purchase agreement ( DPPA ) for the giant project, and the recycling plant will have to import raw materials as local sources will not be sufficient.

The prime minister said Syre should prioritize using local green materials such as lotus fibre and jute fibre, as well as textile scraps and discarded clothing from the country.

Vietnam already has a DPPA mechanism for renewable energy sellers and major buyers, which Syre can discuss with the Ministry of Industry and Trade, he added.

During a February meeting with Pham Anh Tuan, chairman of the Binh Dinh Province People’s Committee, Syre’s operations director Tim King highlighted challenges related to sourcing sufficient raw materials. The proposed large-scale facility would require around 300,000 to 400,000 tonnes of input annually; however, domestic sources can only supply about 40,000 to 60,000 tonnes, making imports necessary.

Vibrant supply chain

In May 2024, Syre Group announced it had raised US$100 million in a Series A funding round. The investment was led by founding investor TPG Rise Climate with the participation of founder H&M Group as well as strategic partners Giant Ventures, Imas Foundation, Norrsken VC, and Volvo Cars.

Giant Ventures is a London-based venture capital firm. Imas Foundation is a purpose-driven sister foundation to Ingka Foundation, the owner of Ingka Group, which owns and operates the majority of Ikea stores globally. Norrsken VC is one of Europe's leading early-stage impact investors, while Sweden’s Volvo is a world-famous car brand.

With the funding round, Syre said Vietnam and Iberia were shortlisted for its first gigascale plants globally.

“Both regions are strategically positioned within the textile supply chain and have a long history of a vibrant textile industry, with access to know-how, feedstock, and logistics as well as green energy,” Syre said. “The specific site selection process now continues with the goal of starting the construction process in 2025.”

Syre, founded in 2023, is dedicated to decarbonizing and reducing waste in the textile industry through large-scale textile-to-textile recycling.