Swedish textile startup Syre AB is planning a significant funding round, aiming to raise as much as $700 million. The capital infusion is earmarked for the construction of a new factory in Vietnam, a move made possible by a recent supply agreement with Nike Inc.

Dennis Nobelius, Chief Executive Officer, confirms, the company has secured a multi-year deal to supply the world’s largest sportswear group with recycled polyester. This major contract is expected to significantly strengthen Syre's prospects for new financing, adds Nobelius.

Co-founded in 2023 by Hennes & Mauritz AB (H&M) and Vargas Holding AB, Syr previously raised $100 million in 2024 to fund its first facility in North Carolina. Nobelius noted that the company is now adopting a more sequential approach to fundraising, contrasting with earlier Vargas-backed ventures.

Syre intends to start approaching lenders and investors within the next six months, with the goal of finalizing a capital raise in the region of $500 million to $700 million in about a year’s time.

The substantial funds raised will be dedicated to constructing the Vietnamese plant in 2027, with commercial production targeted for late 2029. However, the project's progress is partially contingent on the Vietnamese government finalizing import licenses for textile waste, which is a key prerequisite for delivering large-scale circular production in the country.