Austrian wood-based speciality fibers major Lenzing AG (Lenzing) has announced that it has reached a strategic milestone by acquiring a controlling majority in the Swedish innovation company TreeToTextile AB to accelerate development of the next-generation cellulose fiber for textile and non-woven applications.
According to a statement, this step strengthens Lenzing’s position as a leading provider of sustainable, wood‑based specialty fibers and expands its innovation pipeline with a highly scalable, patent‑protected technology platform.
The transaction is executed by issuing new shares.
TreeToTextile was established in 2014 by the Swedish entrepreneur Lars Stigsson, with a mission to develop and commercialize new, renewable, and resource-efficient cellulose fibers that not only minimize environmental impact by reducing chemical use and conserving water and energy but also stand out in the market with cost-effectiveness and enhanced fiber properties.
Innovation at an industrial scale requires time, expertise, and strong partnerships. Lenzing Group’s increased ownership is a clear endorsement of our technology and our ambition to become a major player in the global fiber market, says Dr Roxana Barbieru, CEO of TreeToTextile.
The developments have been supported by its other shareholders H&M Group, Inter IKEA Group, Stora Enso, and LSCS Invest, which will remain as minority shareholders of TreeToTextile.
TreeToTextile is among the world’s most advanced next‑generation fiber technologies and represents the most promising development on the market. Since our initial investment in 2025, the collaboration between the innovative TreeToTextile team and Lenzing’s fiber experts has enabled significant technological progress. We are fully committed to the joint scale‑up and commercialization. H&M Group, Inter IKEA Group, and Stora Enso will continue to support this path as minority shareholders, contributing valuable market and consumer perspectives, said Georg Kasperkovitz, COO of Lenzing.
LSCS Invest also reaffirms its confidence in the joint technology platform through its long‑standing commitment since the foundation of the company and its continued role as a shareholder.
Technological leap in cellulosic fiber
TreeToTextile represents the next major technological leap in cellulosic fiber production – following the development of viscose in the early 20th century and Lenzing’s own Lyocell technology in the 1990s.
The process offers a significantly improved sustainability profile, attractive cost advantages, and broad applicability across textile and nonwoven markets.
With the majority acquisition, Lenzing underscores its commitment to consistently advancing its premiumization strategy and further expanding its leadership position in the global specialty fiber market.
The transaction enables an accelerated scaling of the new technology.
Lenzing plans a significant increase in production output at the existing demonstration plant in Nymölla, Sweden, as well as the preparation of the first industrial‑scale facility.
In addition, the company expects operational synergies from an even closer collaboration.
