Australia’s The Lenzing Group acquired a controlling majority stake in the Swedish technology company TreeToTextile AB, enabling the company to grow its sustainable, wood‑based specialty fiber business.
The transaction will be executed by issuing new shares.
According to Lenzing, TreeToTextile marks an advance in cellulosic fiber production, building on existing processes such as viscose and Lenzing’s Lyocell technology from the 1990s. The process is expected to offer an enhanced sustainability profile, alongside potential cost and scale advantages.
With this majority holding, Lenzing will focus on higher-value speciality fibers and further expand its technological differentiation in the global fiber market.
“TreeToTextile is one of the world’s most advanced next-generation fiber technologies and 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 delivered significant technological progress. We are fully committed to the joint scale-up and commercialization,” said Georg Kasperkovitz, COO of the Lenzing Group.
The existing minority shareholders, H&M Group, Inter IKEA Group and Stora Enso will remain invested. LSCS Invest is also retaining its stake.
“Innovation on an industrial scale requires time, expertise and strong partnerships. The increase in the Lenzing Group’s stake clearly confirms our technology and our ambition to become a major player in the global fiber market,” said Dr. Roxana Barbieru, CEO of TreeToTextile.
During the transaction, Lenzing plans to expand the production capacity of its existing demonstration plant in Nymölla, Sweden, and to prepare the development of an initial large-scale industrial plant. The company also expects operational synergies from closer collaboration.
Image courtesy TreeToTextile
