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Sweden’s Syre reinforces $1 bn textile recycling plant in Vietnam with Nike deal
A strategic deal with U.S. sportswear giant Nike is expected to consolidate Swedish recycling start-up Syre’s plans to roll out a global network of textile-to-textile recycling facilities, beginning with a $1 billion plant in Vietnam.
The Vietnam facility, with planned location in the central province of Gia Lai province, is expected to break ground in 2027. It will convert polyester from textile waste into high-grade PET pellets for yarn and fabric production, a process the company says could help establish Vietnam as a major hub for circular textile manufacturing.
Syre recently signed a long-term strategic supply agreement with U.S. sportswear giant Nike, marking a key step in expanding the use of recycled materials across global apparel supply chains.
Under the deal, Nike will integrate Syre’s recycled polyester into core product lines, supporting efforts to build a closed-loop system in which discarded garments are repurposed into feedstock for next-generation performance apparel.
The partnership carries particular significance in Vietnam, which is Nike’s largest manufacturing base worldwide.
According to Nike’s annual report for fiscal year 2025 ending in May, Vietnam accounted for 51% of Nike’s total footwear output, up slightly from 50% a year earlier. The U.S. firm sources its footwear from 97 finished factories across 11 countries, operated by 15 contract manufacturers.
Besides, Vietnam produced 31% of Nike’s clothing products (up from 28% last year), surpassing China and Cambodia, which each contributed 15%. Nike currently sources apparel from 303 finished factories in 34 countries, run by 67 contract manufacturers.
As of January 2025, Nike had 98 suppliers in Vietnam, operating 162 factories and employing over 493,000 workers. These facilities manufacture apparel, equipment, and footwear.
With the Syre deal, the scale of Nike’s operations in Vietnam provides a strong platform for incorporating Syre’s recycled materials into locally manufactured products, strengthening both firms’ push toward circularity and more sustainable supply chains.
Source: The Investor
