The Swedish fashion chain H&M has partnered with the investment firm Vargas Holding to create a recycling business, Syre. The new entity aims to rapidly scale up the production of textile-to-textile recycled polyester to meet a significant share of H&M group’s long-term demand for recycled polyester, the fashion firm announced. At present, the company sources the material it needs mainly from rPET bottle-to-textile recycling.
H&M said that it had secured a seven-year offtake agreement valued at $600m (ca. €550m). "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," commented Daniel Ervér, CEO of H&M group.
The fast fashion giant's overarching material goal is to have 100 per cent of materials be either recycled or sourced more sustainably by 2030. With H&M moving ever closer to its interim target of 30 per cent recycled materials by 2025, its ambition was now to aim for 50 per cent recycled materials by 2030.
Scalable technology and infrastructure were significant barriers that no single company could overcome alone. As a result, H&M said that it continued to work with other industry players and invest in new innovations and infrastructure.
Syre’s goal is to produce recycled polyester yarn with the same quality as virgin polyester but with a smaller environmental footprint. To this end, the company is building a production facility in the US state of North Carolina, which is slated for commissioning in 2024. "From there, the manufacturing process and technology will be scaled up for global expansion," H&M noted. Within the next decade, Syre reportedly aims to have 12 plants up and fully running and to have installed capacity around the world, producing more than 3 million tonnes of recycled polyester.
In addition to H&M and Vargas Holding, the project is backed by TPG Rise Climate, the dedicated climate investing strategy of global alternative asset manager TPG. According to the clothing retailer, TPG brings wide-ranging expertise in scaling climate solutions globally and in companies focused on the circular economy to the new venture.
