Lenzing has taken a minority stake in Swedish fiber company TreeToTextile as part of the Austrian group’s strategy to accelerate the industry’s development—and, eventually, adaption—of cellulosic fibers.

In doing so, Lenzing joins TreeToTextile’s other shareholders—including retailers H&M and Ikea, pulp manufacturer Stora Enso and family-owned investment firm LSCS Invest—all of which are “united” by the belief that sustainably produced fibers have the power to “change the textile industry to the better.”

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“Today is an exciting day for TreeToTextile and a great example of the collaboration needed to address the environmental challenges of the textile industry,” said Dr. Roxana Barbieru, CEO of TreeToTextile. “Our mission is to provide better fibers to all, and we hope our pioneering partnership will serve as an inspiration to others.”

Established in 2014 by the Swedish entrepreneur Lars Stigsson, TreeToTextile’s mission has been to develop and commercialize a renewable and resource-efficient man-made cellulosic fiber that’s not only environmentally responsible but also attractive to the industry in terms of cost and properties. Now, Lenzing brings its 85-plus years of experience in scaling new fiber technologies to the table, accelerating the next phase of growth for the Stockholm-based company.

“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,” said 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.”

TreeToTextile’s flagship fiber brands—Nyense for textile applications and Nyvado for nonwoven applications—are “built upon new technology creating a unique cellulose fiber with distinctive properties and a low environmental footprint,” the Textile Exchange member said.

“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,” Barbieru said. “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.”

The execution of the transaction is subject to regulatory approvals and is expected by the first half of 2025, per Lenzing.