The Lenzing Group has significantly strengthened its strategic position in sustainable fiber innovation by increasing its stake to a controlling majority in Swedish technology company TreeToTextile AB.
The move, finalized through the issuance of new shares, marks a major milestone in Lenzing’s long-term growth and sustainability strategy, aimed at accelerating the industrialization of next-generation cellulosic fiber technologies.
The acquisition reinforces Lenzing’s role as a global leader in wood-based speciality fibers materials commonly used across apparel, home textiles, and nonwoven applications and adds a highly scalable, patent-protected production platform to its innovation pipeline.
Lenzing positions this technology as a key competitive differentiator in an industry increasingly focused on sustainability and resource efficiency.
TreeToTextile’s process is regarded as a significant technological advance in cellulosic fiber production, building on earlier breakthroughs such as viscose in the early 20th century and Lenzing’s own Lyocell technology developed in the 1990s.
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The company’s method uses renewable wood-based raw materials to produce fibers with a substantially improved environmental footprint, reduced chemical and water use, and favorable cost economics addressing key sustainability and cost pressures in the textile sector.
Lenzing has said the majority ownership enables a faster scale-up of the technology. The plan includes both expanding production at TreeToTextile’s current demonstration plant in Nymölla, Sweden, and preparing for the development of the first industrial-scale manufacturing facility.
These steps are designed to shorten the time to commercial supply and help meet growing demand for more sustainable fiber options.
Lenzing’s leadership describes the transaction as an essential element of its broader premiumization strategy, aiming to offer higher-value, differentiated fiber products that align with global sustainability commitments and customer expectations.
Existing minority shareholders including H&M Group, Inter IKEA Group, Stora Enso, and LSCS Invest will remain invested in TreeToTextile and continue to support product development with market insights and industry perspective.
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These collaborations reflect a broader trend of cross-sector partnerships in sustainable materials innovation, bringing together brands, manufacturers, and technology developers.
Executives from both Lenzing and TreeToTextile highlighted the importance of long-term collaboration to bring the next-generation technology to market at scale.
Lenzing’s increased stake is widely seen as a vote of confidence in the commercial potential of TreeToTextile’s fiber platform and its ability to make a meaningful impact on the global textile value chain.
Cellulosic fibers, derived from plant materials such as wood pulp, are a major segment of the global fiber market and are seen as a key lever for reducing the environmental footprint of textiles.
Innovations like TreeToTextile’s process which seeks to combine scalability with sustainability are closely watched by brands, regulators, and investors as the industry seeks alternatives to traditional viscose and synthetic fibers.
