LENZING, Austria (News release) -- Austrian Lenzing Group invests in Swedish fiber company TreeToTextile to accelerate development of a new renewable and resource efficient cellulose fiber for textile and nonwoven applications. The fiber aims to replace part of the cotton fiber market and help the industry reduce its environmental footprint significantly[1].

- We are both proud and excited to have the leading global cellulose fiber producer join us on our journey to produce renewable and resource-efficient fibers with low environmental impact. Scaling innovation requires time and knowledge, and we are fortunate to have the strong support from our current owners H&M Group, Inter IKEA Group, Stora Enso and LSCS Invest. Now with the additional expertise and sustainability leadership of our new shareholder Lenzing Group, our speed to market will increase significantly, to reach our ambitious goals and become an important player in the textile industry, comments Dr. Roxana Barbieru, CEO of TreeToTextile.

Ever since TreeToTextile AB was established in 2014 by the Swedish entrepreneur Lars Stigsson, TreeToTextile's mission has been to develop and commercialize a new, renewable and resource efficient cellulose fiber, that not only minimizes environmental impact by reducing chemical use and conserving water and energy, but also stands out in the market with its cost-effectiveness and enhanced fiber properties. The development of the fiber has been supported by its owners and strategic partners, H&M Group, Inter IKEA Group, Stora Enso and LSCS Invest. To accelerate the next phase of the company, Lenzing Group is joining with more than 85 years of experience in scaling new fiber technologies.

The Lenzing Group has a revenue of 2.52 bn EUR, approximately 8.000 employees and production sites and sales representation in more than ten countries. Their nominal fiber production capacity is 1.110.000 tons and are behind the well-known trademarks of TENCEL™, LENZING™ ECOVERO™, VEOCEL™ and REFIBRA™.

- We are excited about TreeToTextile's award-winning technology and production process, which further reduces environmental impact, promotes the transition to a more sustainable future and is fully in line with our corporate strategy, says Rohit Aggarwal, CEO of the Lenzing Group. 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, he concludes.

TreeToTextile was established in 2014 by Swedish entrepreneur Lars Stigsson, H&M Group and Inter IKEA Group, with the objective to develop and commercialize a more sustainable process for man-made cellulosic fiber. In 2016, the first fiber-volumes were produced and in 2017 an initial proof of concept was developed. Stora Enso joined in 2019, and in 2021, the announcement of the establishment of a Demo plant at Stora Enso's former premises in Nymölla, was communicated. The investment has been supported by the Swedish Energy Agency and the Demo plant was inaugurated in 2023. In June 2024, the first bale of fiber was produced in the Demo plant, followed by continuous strong development in the different process steps.

The agreement is pending merger control and regulatory approval from relevant authorities.