HÀ NỘI — Swedish textile recycling company Syre is accelerating plans to develop a global network of recycling plants, with its first gigascale factory expected to break ground in 2027 in central Gia Lai Province of Việt Nam.

The US$1-billion project will focus on recycling polyester textile waste into high-quality PET pellets used as raw materials for the spinning and garment industries, the Việt Nam Investment Review reported.

Recently, Syre announced a multi-year partnership with global sports brand NIKE Inc, a step that advances the development of a circular materials economy in the apparel sector. The plant, described as 'gigascale', capable of processing tens of thousands of tonnes of textile waste annually, represents a major milestone for sustainable production in Việt Nam.

The partnership reflects Nike’s commitment to scaling sustainable innovation and Syre’s mission to accelerate the great textile shift. It will focus on step-by-step integration of Syre’s circular polyester into core Nike performance lines, with the first products expected within the next few years.

Syre will be Nike’s lead strategic supplier for textile-to-textile recycled polyester.

The companies share a long-term ambition to expand the use of textile-derived fibres, supporting a closed-loop ecosystem where end-of-life textiles become the feedstock for the next generation of performance gear.

As Syre ramps up the planning for a global network of recycling plants, with Việt Nam chosen as the location for its first large-scale facility, this partnership further strengthens the foundation for its global expansion. It also adds significant momentum to Syre’s growing customer line up, which already includes H&M Group and the Launch Partners, GAP Inc, Houdini Sportswear and Target, announced earlier this year.

With an investment capital of $1 billion, Syre's gigascale textile-to-textile recycling plant in Việt Nam aims to process textile waste into regenerated polyester fibre, positioning Việt Nam as a global hub for circular textile production.

The partnership between Syre and Nike is even more meaningful given that Việt Nam is currently Nike’s largest global supplier, with 171 factories employing more than 480,000 workers as of September this year.

Việt Nam is responsible for producing around 50 per cent of Nike's global output and around 28 per cent of Nike's clothing products. This large scale strengthens a sustainable supply chain, while also providing an ideal foundation for integrating Syre’s recycled materials into Nike's Vietnamese-made products. — VNS