Lenzing Group announced it will acquire a controlling majority stake in Swedish innovation company TreeToTextile AB, increasing its ownership through the issuance of new shares and positioning the company to accelerate the industrialization of TreeToTextile’s fiber technology.
Lenzing described the investment as a strategic move to strengthen its role in sustainable, wood-based specialty fibers and to expand its innovation pipeline through a scalable, patent-protected technology platform. The company positioned TreeToTextile as a step change in cellulosic fiber production, placing the process within the historical arc that followed the development of viscose in the early 20th century and Lenzing’s advances in lyocell technology in the 1990s.
The company said TreeToTextile’s process is designed to deliver a significantly improved sustainability profile alongside cost advantages, with potential applications spanning textile and nonwoven end markets. Lenzing also tied the transaction to its broader premiumization strategy and its aim to expand its leadership position in global specialty fibers.
As part of the majority acquisition, Lenzing said it plans to increase production output at the existing demonstration plant in Nymölla, Sweden, while preparing for what it described as the first industrial-scale facility. The company added that closer collaboration is expected to generate operational synergies as development and commercialization efforts intensify.
Lenzing said existing partners will remain involved as minority shareholders, including H&M Group, Inter IKEA Group, and Stora Enso, which it said will contribute market and consumer perspectives. LSCS Invest remains a shareholder, with Lenzing noting its long-standing involvement since the company’s founding.
KEY QUOTES
“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,”
Georg Kasperkovitz, COO of Lenzing Group
“Innovation at 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,”
Dr. Roxana Barbieru, CEO of TreeToTextile
