Swedish textile innovator Syre AB is preparing to raise up to US $ 700 million in new funding to build a large-scale recycling facility in Vietnam, following the signing of a multi-year supply agreement with Nike Inc. Chief Executive Officer Dennis Nobelius said the partnership with the sportswear company would strengthen Syre’s ability to secure financing and accelerate its global expansion.
Founded in 2023 by Hennes & Mauritz AB (H&M) and Vargas Holding AB, Syre raised US $ 100 million in 2024 to fund its first production plant in North Carolina, United States. Nobelius explained that the company now plans to adopt a more measured, “sequential” approach to fundraising, differing from earlier Vargas-backed ventures such as the now-bankrupt battery maker Northvolt AB.
The deal with Nike represents what Nobelius described as a “bankable offtake agreement”, meaning it can be leveraged for project financing — including for the upcoming Vietnamese factory. He said Syre expects to begin approaching lenders and investors within the next six months, with the goal of completing a capital raise in the range of US $ 500 million to US $ 700 million within about a year.
The planned funds will be used to construct the new plant in Vietnam by 2027, with production targeted to begin in late 2029. However, Nobelius noted that progress will depend partly on the Vietnamese government’s approval of import licences for textile waste, a key requirement for enabling large-scale circular textile production in the country.
Syre’s early customers include H&M Group, Gap Inc., Target Corp., and Houdini Sportswear AB. The company aims to establish around a dozen facilities worldwide over the next decade, capable of producing roughly three million tonnes of circular polyester annually. It is backed by several high-profile investors, including TPG Rise Climate, Volvo Car AB, IMAS Foundation, Giant Ventures, and Norrsken VC.
Discussing Syre’s financial strategy, Nobelius said the company had adjusted its approach to capital planning. Rather than raising funds for multiple factories simultaneously, it now intends to secure capital in stages, ensuring each project is fully funded and operational before moving to the next phase.
