H&M subsidiary signs MoU with Vietnam to build textile recycling plant

SINGAPORE (ICIS)–A subsidiary of Sweden-based fashion retailer H&M, Syre, has announced a Memorandum of Understanding (MoU) with Binh Dinh province in Vietnam to build a circular textile recycling plant, the company said on Friday.

Syre, a joint venture between H&M and technology investment firm Vargas, announced plans to build a Gigascale recycling plant in Binh Dinh, which will produce up to 250,000 tonnes of high-quality polyethylene terephthalate (PET) chips from textile waste.

“Syre has an ambition to support Vietnam in its green transition and as a global leader in the circular textile industry,” said Dennis Nobelius, CEO of Syre.

“The partnership with the Binh Dinh Province will, with the right conditions in place, be a great opportunity to jointly lead the textile shift,” Nobelius added.

Investment details have not been finalized, Nobelius said.

“Binh Dinh offers an excellent investment environment, being a hub for clean energy … with synchronized infrastructure … and favorable climate conditions,” said Vietnam Prime Minister Pham Minh Chinh on 23 April.

Syre is a circular textile-to-textile recycling firm with one plant in North Carolina in the US under construction, to be operational in mid-2025.

The North Carolina plant will have a capacity of up to 10,000 tonnes/year of circular polyester.

In 2024, Syre raised $100 million in funds to construct its plants in North Carolina and other locations such as Vietnam.