H&M Group and Vargas Holding Launch New Venture to Scale Textile-to-Textile Recycled Polyester

Image Credit H&M

H&M Group has secured an offtake agreement with Textile Impact Company 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.

The new co-founded venture, also backed by TPG Rise Climate, aims to rapidly scale textile-to-textile recycling of polyester and contribute to a more sustainable textile industry.

Through Syre, H&M Group aims to contribute to a meaningful shift in the industry by moving away from virgin polyester and the current industry standard bottle-to-textile recycling, known as recycled polyester (rPET), towards a closed loop alternative.

Daniel Ervér, CEO of H&M Group said: “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.”

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, with the intention of being 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.

Dennis Nobelius, CEO of Syre said: “Syre marks the start of the great textile shift. We envision a world where every textile fibre 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.”

H&M Group also said it has also strengthened its recycled material ambition – an important part of the strategy to decouple growth from virgin resource use.

H&M said the group’s overarching material ambition is to have 100% of materials to be either recycled or sourced in a more sustainable way by 2030, with the subgoal of 30% recycled materials by 2025.