Nike Follows Gap and Target’s Lead, Secures Syre Purchase Agreement

Nike is moving forward with its sustainable strategy. The U.S. fashion and sports equipment giant has sealed a purchase agreement with Syre, the next-generation materials company specializing in recycled polyester, thus becoming the group’s main supplier of this fabric. The first products will reach the market in the next few years, through Nike’s main performance lines.

“This is not a one-off initiative or a capsule collection, but a moment when circular materials move from concept to large-scale commercial reality and widespread adoption,“ said Dennis Nobelius, CEO of Syre, about the collaboration. The amount of recycled fiber agreed between the two companies, however, has not been disclosed.

The company, which was born within H&M in 2023 but already has other investors such as the Vargas Holdings and TPG Rise Climate funds, has added major groups to its brand portfolio in recent months. Gap, Target and Houdini Sportswear have been the latest giants to seal a purchase commitment with the company, in mid-2025.

This type of agreement allows companies in the sector, such as Nike, to secure the long-term supply of recycled materials. For next gen companies, on the other hand, it facilitates their access to financing thanks to the support of industry giants.

Syre’s latest agreements include Gap, Target and Houdini Sportswear

Gap, on the one hand, has signed up to use up to 10,000 metric tons of this fiber per year, which it will introduce in the collections of the Old Navy, Gap, Banana Republic and Athleta brands.

Target, which also has a textile offering within its stores,has committed to introduce recycled fiber in its own-brand garments, although the quantity has not been determined. Finally, Houdini Sportswear, a Swedish company specializing in outdoor wear, plans to replace half of the polyester it uses annually with Syre’s recycled fiber.

Syre has stepped up planning for a global network of recycling plants, with the first large-scale facility scheduled to begin construction in 2027, located in Vietnam.