Gap Inc., Houdini, Target partner with recycled polyester firm Syre on textile circularity

Apparel brands Gap Inc., Houdini and Target have each signed a commercial partnership with Swedish textile-to-textile recycling firm Syre – an H&M-founded circularity venture.

Syre was co-founded by H&M and investor Vargas Holding in 2024, with the goal of accelerating textile-to-textile recycling and ‘dewaste’ the apparel industry. Now with a blueprint recycled polyester manufacturing plant in construction in North Carolina, the company has signed three partnership agreements with large brands.

Gap Inc. (owner of brands such as Old Navy and Banana Republic) aims to utilise 10,000 metric tonnes of Syre’s recycled polyester chip – which can be made into yarn for garment production – every year. Houdini, a Swedish outdoor brand, has committed to sourcing 50% of its polyester usage from Syre circular polyester for a period of three years. And Target will incorporate  Syre’s textile-to-textile recycled polyester into a selection of its products as part of its commitment to design 100% of owned brand products for circularity by 2040.

“We’re proud to be among the first to support Syre’s innovative textile solutions. This partnership enables us to accelerate our progress toward realising a more circular fashion industry,” said Dan Fibiger, Vice President of Global Sustainability at Gap Inc. “Our ambition to utilise 10,000 metric tons per year of Syre’s recycled polyester chip is not only an innovation that we feel will resonate with our customer, but it is an important lever for Gap Inc. in our efforts to bridge the climate gap.”

Syre’s ambition: 3 million tonnes of circular polyester by 2032

The deals are an important step in Syre’s commercialisation: its blueprint plant expected to be operational in 2026 and deliver up to 10,000 tonnes of circular polyester annually, and the company is now in talks with authorities and partners in Vietnam to establish its first ‘gigascale plant’, aiming to produce 150,000 to 250,000 tonnes of recycled polyester every year. 

By 2032, Syre aims to have the capacity to produce 3 million tonnes of textile-to-textile recycled polyester every year, reducing the industry’s carbon footprint by about 15 million tonnes.

“We are thrilled to announce our partnerships with these esteemed and forward-thinking brands, representing different segments and sizes,” says Dennis Nobelius, CEO Syre. “They are truly front runners, understanding the need to secure capacity of a scarce resource to be. As we embark on the next phase of scaling at speed, we’re confident that these collaborations will not only bolster commercial success but also help redefine the industry and drive the urgent shift towards true circularity.”

Syre’s role in H&M’s circularity goals

H&M has made significant progress in sustainable sourcing in recent years. In 2024, 89% of the materials used in the Swedish brand’s commercial products came from sustainable sources – including 29.5% of recycled materials.

For polyester, H&M used 94% of recycled material last year – up from 79% in 2023. But much of the recycled polyester on the market today is manufactured from used PET bottles, and H&M is seeking to move the industry towards a closed-loop alternative: polyester made from textile waste.

Upon announcing the new venture in 2024, H&M CEO Daniel Ervér said it was “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,” he added.