Lenzing AG to become majority owner of TreeToTextile AB and accelerates industrialization of new fibers

Lenzing AG has officially announced an agreement to increase its shareholding in Swedish technology firm TreeToTextile AB to a majority stake. This strategic acquisition positions Lenzing to lead the rapid industrialization of TreeToTextile’s proprietary fiber technology, marking a significant step forward in the global textile industry’s transition toward sustainable, bio-based materials.

Strategic Expansion of Fiber Capabilities

TreeToTextile, founded as a joint venture between H&M Group, Inter IKEA Group, LSCS Invest, and Stora Enso (whose stake was previously acquired), has developed a unique chemical process for regenerating cellulose. By securing a majority position, Lenzing integrates this nascent technology into its established global operations. The move allows Lenzing to deploy its extensive engineering and processing expertise to transition TreeToTextile from demonstration-scale operations to full industrial capacity.

The acquisition aligns with Lenzing’s “Better Growth” strategy, which focuses on satisfying the rising global demand for eco-responsible fibers. While Lenzing is already a market leader in lyocell and specialty viscose through its TENCEL™ and ECOVERO™ brands, the addition of TreeToTextile’s technology diversifies its portfolio with a cost-efficient, low-impact alternative production route.

Innovative Production Technology

The core asset of TreeToTextile is a novel technology that produces bio-based fibers with a significantly reduced environmental footprint compared to conventional generic fibers. The process utilizes a distinct solvent system and regeneration method that lowers energy consumption and chemical usage.

“The technology developed by TreeToTextile is a perfect complement to our existing portfolio,” stated Lenzing management regarding the deal. By taking the helm, Lenzing aims to resolve the technical challenges associated with scaling up new biopolymer processes, ensuring that the fibers meet the rigorous quality and volume requirements of major fashion and home furnishing retailers.

Future Commercialization

Following the transaction, TreeToTextile will operate with Lenzing as the controlling shareholder, while founding partners H&M Group, Inter IKEA Group, and LSCS Invest remain invested as minority partners. The collaboration ensures that the development of the fiber remains closely linked to downstream market needs, facilitating a smoother entry into commercial supply chains by 2027.

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