H&M-backed fibre startup TreeToTextile gets investment from Austrian manufacturing heavyweight

Founded in 2014 by entrepreneur Lars Stigsson, TreeToTextile has developed an innovative fibre that it claims is renewable with a significantly lower carbon footprint, using less water, energy and chemicals compared to conventional production methods.

The new investment from Austria's Lenzing Group – which brings more than 85 years of experience in developing and scaling fibre technology – aims to accelerate the development of their environmentally-friendly cellulose fibre solution.

"We're thrilled to welcome Lenzing Group as a new shareholder. Lenzing has an undeniable heritage in innovative and sustainable fibre production, and proven experience in scaling up and commercialising fibres in the global market," says Roxana Barbieru, CEO of TreeToTextile, speaking to Impact Loop.

Heavyweight backers

Following regulatory approval of the deal, TreeToTextile's impressive ownership roster now includes H&M Group, Inter IKEA Group, Lenzing Group, Stora Enso and LSCS Invest.

Austrian powerhouse Lenzing Group boasts annual revenues of approximately €2.5 billion, employs around 8,000 people and operates production facilities in more than ten countries.

From lab to production

TreeToTextile began setting up a demonstration facility at Stora Enso's former premises in Nymölla, Sweden, back in 2021. Last June marked a milestone when the company produced its first bale of fibre at the demo plant.

However, the startup still has a long way to go before hitting profitability. In 2023, the company reported losses of around €6.1 million, with no net sales recorded.