Lenzing Advances Fiber Industry with Strategic TreeToTextile Control

Lenzing has taken a new step in its growth strategy in sustainable fibers with the acquisition of a majority stake in the Swedish company TreeToTextile, which specializes in next-generation fibers. The transaction enables the Austrian group to take control of the company and accelerate the industrial development of its next-generation technology, it said in a press release.

The transaction, executed through the issuance of new shares, strengthens Lenzing’s position as a leading supplier of cellulosic-based specialty fibers and expands its innovation portfolio with a scalable, patent-protected technology platform.

TreeToTextile, founded in 2014 and headquartered in Stockholm in Sweden, has developed a process that represents a technological leap forward in the production of cellulosic fibers, following milestones such as viscose in the 20th century or lyocell in the 1990s. The technology promises substantial improvements in sustainability, cost advantages and broad application in textiles and nonwovens. “Innovation on an industrial scale requires time, expertise and strong partnerships,“ said Roxana Barbieru, CEO of TreeToTextile.

With the majority entry, Lenzing seeks to “accelerate the industrial scaling and commercialization of this innovation,“ said Georg Kasperkovitz, chief operating officer of the Austrian company. The group plans to significantly increase production at the Nymölla plant in Sweden and to move forward with preparations for the first large-scale industrial facility at a location in Europe to be determined.

Lenzing seeks to “accelerate the industrial scale-up and commercialization” of new cellulosic fibers for textiles

The company also expects to generate operational synergies from closer collaboration between the Lenzing and TreeToTextile teams. The operation is part of the group’s “premiumization” strategy and its objective of consolidating its leadership in the global specialty fibers market.

Following the transaction, H&M Group, Inter Ikea Group and Stora Enso will continue as minority shareholders, contributing their market and consumer vision, together with Lscs Invest. TreeToTextile currently has 57 employees and locations in Stockholm, Nymölla and Gothenburg.

Lenzing is a century-old industrial group, headquartered in the Austrian city of the same name, specializing in the production of specialty and premium cellulosic-based fibers, with a turnover of €2.66 billion in 2024 and nearly 7,800 employees worldwide.