The Fashion industry faces a pressing global challenge with less than 1% of the global textile fiber market originating from recycled textiles. The industry accounts for 7-10% of global CO2e emissions, with polyester emerging as the largest emitter and fastest-growing fiber.
For that instance, Syre, a venture initiated by global investor Vargas Holding and Swedish retailer H&M Group, is spearheading the decarbonization and wastage reduction of the textile industry through large-scale textile-to-textile recycling, starting with polyester.
Syre is building a production plant in North Carolina, United States, to be operational during 2024. From there, the manufacturing process and technology will be scaled up for global expansion. Within ten years, Syre aspires to have twelve plants up and running at full speed and capacity across the globe, producing more than three million metric tons of recycled polyester.
This co-founded venture is also backed by TPG Rise Climate and aims to rapidly shape the textile recycling of polyester and contribute to a more sustainable textile industry. H&M Group has secured an off-take agreement with Syre worth a total of US$ 600 million over seven years, covering a significant share of H&M Group’s long-term need for recycled polyester, which is currently primarily sourced from rPET bottle-to-textile for the retailer’s long-term need for recycled polyester, currently primarily sourced from circular polyester.
Daniel Ervér, CEO of H&M Group told “The new venture Syre is an important next step on H&M Group’s journey to integrate circularity across our business. With this solution to rapidly scale textile-to-textile recycling, we want to continue to drive and inspire more industry players to join us in closing the loop and accelerating the shift towards a more sustainable future.”
H&M Group’s overarching material ambition is to have 100% of materials either recycled or sourced in a more sustainable way by 2030, with the objective of 30% recycled materials by 2025. As the company is moving closer to achieving the target of 30% recycled materials by 2025, the ambition is to now aim for 50% recycled by 2030.
“Syre marks the start of the great textile shift. We envision a world where every textile fiber sees a new day. By implementing true textile-to-textile recycling at hyper-scale, we want to drive the transition from a linear to a circular value chain by putting textile waste to use, over and over again.”
Dennis Nobelius, CEO of Syre
Scalable technology and infrastructure are significant barriers that no company can overcome alone. That is why H&M Group continues to collaborate with other industry players and invest in innovations and infrastructure, such as Syre.
Syre has a plan to set up multiple production plants generating textile-to-textile circular polyester worldwide to boast quality on par with oil-based virgin polyester and superior sustainability performance, reducing CO2e emissions by up to 85%.
The first production plant is underway in North Carolina, USA, with plans for global expansion in Asia and Europe within the next decade.
Syre will aim to provide a recycled polyester yarn with equivalent quality to virgin polyester but with a lower impact on the planet. Syre is building a production plant in North Carolina, United States, intending to be operational during 2024. From there, the manufacturing process and technology will be scaled up for global expansion. Within ten years, Syre aspires to have twelve plants up and running at full speed and capacity across the globe, producing more than three million metric tons of recycled polyester.
Syre marks the start of the great textile shift with the envision of a world where every textile fiber sees a new day. By implementing true textile-to-textile recycling at hyperscale, we want to drive the transition from a linear to a circular value chain by putting textile waste to use, over and over again.
Vargas Holding and H&M Group are partnering with companies that specialize in building impact on companies to realize ideas that push boundaries for a sustainable future. In addition, TPG Rise Climate, the dedicated climate investing strategy of global alternative asset manager TPG, has joined as a founding investor, bringing extensive experience scaling climate solutions globally and in companies focused on the circular economy.
From there, the manufacturing process and technology will be scaled up for global expansion. Within ten years, Syre aspires to have twelve plants up and running at full speed and capacity across the globe, producing more than three million metric tons of recycled polyester.
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