Syre's Polyester Recycling: Partnerships Drive Scale

The textile-to-textile recycling firm, Syre, is forging strategic alliances with Swiss-Swedish company ABB and Japan’s JAPLAN Group to realize its vision of a first-of-its-kind commercial-scale plant.

Rising Costs Favor Circular Polyester

CEO Dennis Nobelius notes that recent geopolitical events, specifically the disruption in the Strait of Hormuz, have inadvertently benefited Syre’s ambitions. Surging crude oil and natural gas prices have driven the cost of virgin polyester to record highs.

Major fiber suppliers have increased prices by 25 percent or more in the past month, narrowing the cost gap between recycled polyester and its conventional counterpart. This shift is attracting attention from fashion brands seeking to mitigate volatility in petrochemical-derived inputs.

“Brands don’t like volatility,” Nobelius said. “That’s a benefit to us because our feedstock isn’t related to oil being dug from the ground, so we can disconnect a bit from that. Moving forward, that’s something we see as a valuable contribution in our discussions with them.”

Vietnam Plant: A Collaborative Effort

Syre has secured significant backing from investors including TPG Rise Climate, Volvo Car AB, Giant Ventures, Norrsken VC, and the IMAS Foundation. The company has also established partnerships with key players like H&M Group.

However, securing sufficient feedstock – used clothing – remains a challenge. Discussions with the Vietnamese government, led by Prime Minister Phạm Minh Chính, are progressing positively. Construction could begin next year, with the plant expected to be fully operational by 2028.

ABB Partnership: Electrification and Automation

On Tuesday, Syre announced a memorandum of understanding (MOU) with ABB, focusing on adapting ABB’s technologies – including distributed control systems and digital industrial software – to the plant’s specific needs. The goal is to enhance resource efficiency and optimize plant operations.

ABB’s recent renaming of its pulp and paper division to pulp, paper and fiber division is seen as a positive sign of their commitment. Nobelius believes ABB’s technologies can reduce energy consumption, improve yield, and ensure continuous operation.

JEPLAN Group: Operational Expertise and Byproduct Utilization

Thursday brought another partnership announcement, this time with JEPLAN Group, a Japanese environmental service firm. JEPLAN will contribute expertise in plant operations and optimization, focusing on fine-tuning for large-scale production.

A key area of collaboration will be securing beneficial uses for byproducts generated by the plant, furthering the circular economy model. JEPLAN’s existing PET chemical recycling plant in Kitakyushu will serve as a valuable resource for testing and scaling technologies.

“Syre’s ambition, business backbone and global reach in technology integration—combined with our extensive chemical recycling experience—create a powerful platform for accelerating breakthrough solutions for the textile industry,” said Masaki Takao, CEO of JEPLAN.

A Technology-Agnostic Approach

Nobelius emphasizes Syre’s commitment to collaboration, stating, “We’re not the best at everything, and we recognize the different types of expertise out there in the world.” He believes that attempting to develop all necessary technologies in-house would delay plans by at least a decade.

Syre currently favors a glycolysis-based approach for converting polyester waste into high-quality monomers, but remains open to adopting superior technologies. The company’s long-term vision includes establishing 10-12 gigascale production plants by 2032, with a collective output of 3 million metric tons of circular polyester (cPET) annually. Further expansion into Indonesia, Portugal, or India is also being considered.