Global engineering giant ABB has signed a Memorandum of Understanding (MoU) with Swedish textile impact startup Syre to explore technologies for the latter's first textile-to-textile recycling plant in Vietnam.

The agreement lays the groundwork for collaboration, investigating how ABB’s automation, electrification, and digital solutions could enable safe, efficient, and scalable operations. It also aims to optimize process and quality control as Syre pushes to produce circular polyester at industrial scale.

The proposed plant, located in Gia Lai province, will recycle polyester from used textiles and industrial waste into new polyester material. Polyester, one of the world’s most widely used fibers, is typically fossil-based. Recycling it reduces reliance on virgin inputs, lowers carbon impact, and keeps valuable materials in circulation, supporting a more circular textile industry.

Under the MoU, ABB and Syre will assess how ABB’s distributed control systems, digital industrial software, and electrification portfolio could be tailored for textile-to-textile recycling. These efforts will run alongside Syre’s detailed engineering phase.

“This agreement reflects ABB’s role in supporting emerging industrial applications where automation and electrification can enable greater resource efficiency,” said Wilson Monteiro, Global Business Line Manager for Pulp, Paper and Fiber in ABB’s Process Industries division.

“Together with Syre, we will explore how our experience in fiber processing, chemicals and advanced process industries can be applied to polyester recycling. We’re excited to discover what’s possible as we embark on this new technological collaboration.”

Dennis Nobelius, CEO of Syre, added: “As we now move into full industrial deployment, partnerships like this become critical. Industrializing textile-to-textile recycling is a complex undertaking, and while strong customer demand is essential, it must be matched with best-in-class industrial partners. ABB brings exactly the depth of expertise and execution capability needed, they are a cornerstone of the industrial ecosystem we are building.”