Swedish textile firm Syre eyes $1 bln fiber factory in central Vietnam

Sweden’s textile company Syre wishes to invest in a polyester fiber recycling factory in the south-central province of Binh Dinh, with an estimated investment ranging from $700 million to over $1 billion.

Sharing the intention at a working session with the provincial People's Committee on Tuesday, Tim King, operations director at Syre, also expressed concerns over the supply of raw materials.

He noted that the factory would require around 300,000 to 400,000 tons of raw materials per year. According to the group’s survey, domestic materials can only supply around 40,000 to 60,000 tons, with the remainder to be imported.

The imported raw materials, which include used clothes and fabrics (HS code 6309), are classified as belonging to the list of "used consumer goods, medical equipment and vehicles which are banned from import under Circular 08/2023" by the Vietnamese Ministry of Industry and Trade.

Another concern raised by Tim King is whether Binh Dinh’s electricity supply can meet the large and long-term production demands of the factory.

In reply, Chairman of the provincial People’s Committee Pham Anh Tuan confirmed that the Vietnamese government is committed to creating optimal conditions for investors to develop sustainable businesses. With this in mind, the regulation prohibiting the import of used clothes and fabrics for recycling may be reconsidered and addressed by the government.

“The key issue for Syre is to gain the trust of the Vietnamese government and ministries. It must prove its financial capability, modern technology, and commitment to circular economy development, green economic growth, and environmental protection,” he emphasized.

Once the firm demonstrates its ability to meet these requirements and its determination to invest in Binh Dinh, the government will undoubtedly support the project, and the province will accompany the group in speeding up the project's implementation, he said.

The local leader also pledged that the province will do its best to meet the group's electricity and electricity pricing needs.

Tim King committed to applying modern technology to the polyester recycling project to meet world-leading environmental protection standards, while also adhering to Vietnam's environmental regulations.

The group has prepared financial plans for the project and hopes to receive support from the Vietnamese government, ministries, and the Binh Dinh provincial People's Committee to finalize the project, he added.

Syre, established in 2023, focuses on transforming the value chain from a linear system to a circular system by using textile waste to produce high-quality recycled polyester products.