Target joins forces with cleantech startup Syre to accelerate circular textile solutions

EUROPE – Cleantech startup Syre has entered into a strategic partnership with retail giant Target, alongside Gap and Houdini Sportswear, to fast-track the adoption of circular polyester.

The collaboration is part of a broader effort to reduce the textile sector’s dependency on virgin fossil-based polyester and to promote large-scale textile-to-textile recycling.

Founded in March 2024 by the H&M Group and sustainability investment firm Vargas, Syre aims to reduce the environmental footprint of polyester production radically.

The company’s process repurposes post-consumer textile waste into high-quality recycled polyester, resulting in up to 85% lower CO₂ emissions than traditional polyester manufacturing.

Each launch partner brings a unique commitment to the table. Gap Inc., the largest specialty apparel retailer in the U.S., plans to use 10,000 metric tons of Syre’s circular polyester annually.

Swedish outdoor brand Houdini Sportswear, known for its commitment to circular design, has pledged to transition 50% of its polyester sourcing to Syre over the next three years.

Target, meanwhile, is weaving circularity into its long-term strategy: the retailer has pledged to design all owned brand products for a circular future by 2040 and has begun integrating Syre’s recycled polyester into selected product lines.

“This partnership enables us to accelerate our progress toward realizing a more circular fashion industry,” said Dan Fibiger, Gap’s Vice President of Global Sustainability.

“Using Syre’s recycled polyester helps us innovate in ways that matter to our customers and contribute to global climate goals.”

Syre CEO Dennis Nobelius emphasized the significance of these alliances, “We are thrilled to announce our partnerships with these esteemed and forward-thinking brands. They are truly frontrunners, securing access to what will become a scarce and valuable circular resource.

“As we scale up, these partnerships are essential to building commercial momentum and delivering meaningful change in the textile industry.”

Backed by US$100 million in Series A funding, Syre is building a “blueprint” plant in North Carolina, set to open in 2026, and has announced plans for its first gigascale plant in Vietnam.

A single gigascale facility is expected to produce between 100,000 and 250,000 metric tons of circular polyester annually, crucial in helping close the projected 10–12 million metric tonne shortfall of recycled polyester by 2030.

As demand for sustainable materials surges, Syre’s technology and strategic alliances mark a pivotal moment in reshaping the fashion supply chain, from one built on waste to one powered by circular innovation.

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