Lenzing AG takes majority stake in TreeToTextile, strengthening its sustainable fiber strategy

The Lenzing Group has reached a new milestone in its long-term growth strategy by acquiring a controlling majority in Swedish company TreeToTextile AB. The transaction, completed through the issuance of new shares, deepens Lenzing’s focus on sustainable, wood-based specialty fibers and adds a scalable, patent-protected technology to its development pipeline.

TreeToTextile has developed a new process for producing cellulosic fibers that builds on more than a century of industry progress. After viscose in the early 1900s and lyocell in the 1990s, the company’s technology offers a different approach with a strong sustainability profile, competitive cost structure, and flexibility across textile and nonwoven applications. For Lenzing, the majority acquisition supports its premiumization strategy and reinforces its position in the global specialty fiber market.

Lenzing first invested in TreeToTextile in 2025. Since then, joint teams from both companies have worked closely to advance the technology. According to Georg Kasperkovitz, COO of Lenzing Group, this collaboration has already delivered meaningful technical progress. He describes TreeToTextile as one of the most promising fiber developments currently available and confirms Lenzing’s full commitment to scaling and commercialization.

H&M Group, Inter IKEA Group, and Stora Enso will remain minority shareholders. Their continued involvement brings valuable insights from brand, retail, and material supply perspectives. LSCS Invest also maintains its shareholding, underlining its long-standing confidence in the technology platform.

TreeToTextile CEO Dr. Roxana Barbieru welcomes the increased ownership, noting that bringing new fiber technologies to industrial scale requires patience, technical depth, and reliable partners. She sees Lenzing’s move as a strong signal of trust in both the process and the company’s ambition to become a significant player in the global fiber market.

With the transaction completed, Lenzing plans to accelerate scale-up activities. This includes a substantial increase in output at the existing demonstration plant in Nymölla, Sweden, and preparations for the first industrial-scale production facility. Closer operational integration is also expected to create efficiencies across development, production, and commercialization.

For Lenzing, the majority stake in TreeToTextile is less about short-term expansion and more about building a solid foundation for the next phase of sustainable fiber production grounded in proven expertise, long-term partnerships, and scalable technology.