Cellulosics leader Lenzing is acquiring a minority share in TreeToTextile AB, joining the existing shareholders H&M Group, IKEA, Stora Enso and LSCS Invest.

TreeToTextile was established as a joint venture with Stora Enso in 2014 with the aim of developing a more sustainable process for cellulosic fibre production. The company has operated pilot lines since 2015 and invested in a €35 million demonstration plant at Stora Enso’s Nymölla mill in southern Sweden which opened in 2023. The next step in the company’s evolution will be to scale up the production and make its fibres available to the market.

“We are excited about TreeToTextile’s award-winning technology and production process, which further reduces environmental impact, promotes the transition to a more sustainable future and is fully in line with our corporate strategy,” says Rohit Aggarwal, CEO of the Lenzing Group. “This partnership is a significant investment and a sign of Lenzing’s commitment to innovation by combining the power of its own innovation engine with a strong strategic cooperation approach. We look forward to contributing our expertise to TreeToTextile’s mission.”

“With the additional expertise and sustainability leadership of our new shareholder, our speed to market will increase significantly to reach our ambitious goals and become an important player in the textile industry,” adds TreeToTextile CEO Roxana Barbieru.

Lenzing Group has produced sustainable regenerated cellulosic fibre and dissolving wood pulp for over 85 years and is at the forefront of making the fibre industry more environmentally friendly with its Tencel, Ecovero and Veocel brands.

www.lenzing.com

www.TreeToTextile.com