Lyocell fibers are produced through a solvent-based spinning process and are valued for their strength, softness, and sustainability profile. The lyocell process operates in a largely closed-loop system, where the solvent is recovered and reused, making it one of the most environmentally favorable fiber production methods in the industry – even more so when produced from recycled raw material instead of virgin wood.

Through the collaboration, CTA and Circulose will offer brand partners lyocell fibers of both standard and non-fibrillating grades, both produced using CIRCULOSE® pulp.

Supply will be limited in 2026, with the ambition to scale capacity to meet demand during 2027. Commercial volumes in 2026 will be available only to selected brands, while those seeking access in 2027 are invited to engage in product development already now.

In addition to commercializing lyocell made with CIRCULOSE® under Circulose's license model, CTA has committed to purchase a set volume of CIRCULOSE® pulp over the coming years. Leveraging close collaboration between both parties, Circulose will achieve steady enhancements in CIRCULOSE® pulp performance and quality, while CTA will scale up the production capacity of recycled lyocell fibers through optimized manufacturing processes. By ensuring demand certainty for recyclers like Circulose, this kind of commitment enables the investment and scale needed to reduce costs and accelerate the mainstream adoption of circular textile fibers across the industry.

"Lyocell is a more sensitive process than viscose, making the use of recycled pulp more challenging," said Jonatan Janmark, CEO of Circulose. “CTA's ability to produce lyocell from CIRCULOSE® is a strong testament to their technical capabilities, as well as the performance of our pulp. We are very pleased to work with CTA to bring this opportunity to our brand partners and are excited by what it means for the broader adoption of circular materials."

CTA Green Fibre is a producer of lyocell fibers and part of the China General Technology (Group) Holding Co. Ltd., one of China's leading research and industrial platforms for textile innovation. CTA operates commercial-scale lyocell production facilities and has developed proprietary technologies for advanced lyocell fiber variants.