Sateri starts lyocell fibre production at new Yutai plant
Sateri (Shandong) Fibre Co., Ltd. has begun operations at its new facility in Yutai county, Shandong province. The plant produced its first bale of lyocell fibre on 13 March 2026, marking the start of commercial output at the site.
The first production line has an annual capacity of 150,000 metric tonnes. It is the first step in a larger plan for the Yutai facility, which will eventually include four lines with a combined capacity of 600,000 metric tonnes. Once completed, the site is expected to rank among the largest lyocell production bases globally.
The opening ceremony was attended by Shandong’s Vice Governor, reflecting the project’s importance to the region. The Yutai plant is positioned as part of the province’s effort to build a more sustainable and higher-value textile industry. Lyocell fibre, known for being biodegradable and derived from renewable raw materials, fits into this broader shift toward greener manufacturing.
With the Yutai line now operational, Sateri’s total lyocell capacity has reached 600,000 metric tonnes across four sites in Jiangsu and Shandong provinces. This expansion strengthens the company’s presence in China’s growing market for sustainable fibres.
Sateri produces lyocell under its brand, The Lyocell Company. The material is used in a wide range of textile applications, from apparel to home products, and is gaining attention as brands and consumers look for alternatives with a lower environmental impact.
The Yutai project is still under development, with additional lines planned in phases. As capacity increases, the site is expected to play a larger role in meeting both domestic and international demand for lyocell fibre.
