Lenzing snaps up minority share in cellulosic fibre producer TreeToTextile

Cellulose fibre supplier Lenzing Group has acquired a minority share in producer TreeToTextile AB. It joins the likes of existing shareholders H&M Group, Inter Ikea Group and Stora Enso to back the Swedish firm.

Like Lenzing, TreeToTextile’s interests also lie in the production of cellulosic fibre, with the company having been initially established in 2014 with the objective of developing a more sustainable iteration of this process.

Since its founding, the firm has operated pilot lines and invested in a demonstration plant, with its next step aimed at scaling up production and making such fibres available on the market.

Lenzing anticipates the transaction, currently subject to regulatory approvals, to close by the first half of 2025.

The CEO of the group, Rohit Aggarwal, said that TreeToTextile’s production process fell in line with the company’s corporate strategy. He added: “This partnership is a significant investment and a sign of Lenzing's relentless commitment to innovation by combining the power of its own innovation engine with a strong strategic cooperation approach. We look forward to contributing our expertise to TreeToTextile’s mission.”

TreeToTextile CEO, Roxana Barbieru, meanwhile, said that with Lenzing on board, the “speed to market will increase significantly, to reach our ambitious goals and become an important player in the textile industry”.

TreeToTextile specialises in transforming dissolving pulp into staple fibres designed for use in textile and nonwoven products. The company was established as a joint venture between H&M Group, Inter Ikea Group and LSCS Invest, which together had set about commercialising the technology and fibre.