LENZING – The Austrian Lenzing Group has taken a minority share in Swedish fibre company TreeToTextile to help accelerate the development of a new renewable and resource-efficient cellulose fiber, which is aimed at the textile and nonwoven sectors. The new fibre aims to partially replace cotton and contribute to reducing the fashion industry’s environmental footprint.
Dr. Roxana Barbieru, CEO of TreeToTextile, said: “We are proud and excited to have the global leader in cellulose fibre production join us in our mission to create renewable, resource-efficient fibers with a low environmental impact. Innovation requires time and expertise, and we are fortunate to have strong support from our current owners, H&M Group, Inter IKEA Group, Stora Enso, and LSCS Invest.
“Now, with the added expertise and sustainability leadership of Lenzing Group, we will be able to accelerate our market presence and work towards our ambitious goals of becoming a key player in the textile industry.”
TreeToTextile, founded in 2014 by Swedish entrepreneur Lars Stigsson, has focused on developing and commercialising a cellulose fibre that – it is claimed – reduces chemical use, conserves water and energy, and is both cost-effective and high-performing.
The development has been backed by key partners, including H&M Group, Inter IKEA Group, Stora Enso, and LSCS Invest. With Lenzing Group’s more than 85 years of experience in fibre technology, this new phase of the company aims to scale the innovation more rapidly.
Lenzing Group, with revenues of €2.52bn, a workforce of approximately 8,000, and production facilities in more than ten countries, produces 1.1 million tons of fibre annually. It is known for trademarks such as Tencel, Lenzing Ecovero, and Refibra.
Rohit Aggarwal, CEO of Lenzing Group, commented on the partnership, stating: “We are excited about TreeToTextile’s award-winning technology, which aligns perfectly with our strategy to reduce environmental impact and support the transition to a more sustainable future. This investment reflects Lenzing’s commitment to innovation through strategic collaboration. We are eager to bring our expertise to support TreeToTextile’s mission.”
TreeToTextile has made significant progress since its founding. In 2016, it produced its first volumes of fibre, followed by proof of concept in 2017. Stora Enso joined the venture in 2019, and in 2021, TreeToTextile announced the construction of a demonstration plant at Stora Enso’s former site in Nymölla, Sweden, with support from the Swedish Energy Agency.
The demo plant was inaugurated in 2023, and by June 2024, the first bale of fibre had been produced, marking continuous advancements in the fibre production process.
The agreement between TreeToTextile and Lenzing Group is subject to merger control and regulatory approval from the relevant authorities.
