Lenzing acquires majority stake in TreeToTextile

Austrian fibre manufacturer Lenzing AG (Lenzing) is set to acquire a majority stake in the Swedish company TreeToTextile AB.

In a statement, the group described the planned acquisition as a “further strategic milestone”. The company, founded in 2014, represents “the next major technological breakthrough in cellulosic fibre production”. Lenzing had already acquired a minority stake in TreeToTextile last year and now intends to significantly increase it.

Financial details of the transaction, which will be “implemented through the issuance of new shares”, were not disclosed by the two companies. Notable investors such as H&M Group, Inter Ikea Group and Stora Enso will continue to support TreeToTextile as minority shareholders. They will also contribute valuable market and consumer perspectives, emphasised Georg Kasperkovitz, chief operating officer (COO) of Lenzing, in a statement. LSCS Invest will also remain a shareholder in the company.

The acquisition of the majority stake by Lenzing will enable an “accelerated scaling of the new technology” from TreeToTextile, the group explained. The new majority owner plans a “significant increase in production output at the existing demonstration plant in Nymölla, Sweden, as well as the preparation of the first large-scale industrial plant”. In addition, “operational synergies from closer cooperation” are expected.

Roxana Barbieru, the CEO of TreeToTextile, welcomed the transaction. “Innovation on an industrial scale requires time, expertise and strong partnerships,” she explained. “The increase in the Lenzing Group's stake is a clear confirmation of our technology and our goal of becoming a major player in the global fibre market.”

This article was translated to English using an AI tool.

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