News Article

H&M Group’s co-owned TreeToTextile builds demonstration plant for upscaling new sustainable textile fiber

Together with our partners, IKEA, Stora Enso, and LSCS Invest, TreeToTextile will now invest €35 million in constructing a demonstration plant in Sweden. This marks a critical step towards commercialising new sustainable textile fibers with scalable technology and low manufacturing cost.

TreeToTextile, a joint venture established in 2014, offers a new technology to produce biobased textile fibers with a low environmental footprint at an attractive cost level. The new fiber is a regenerated cellulosic fiber produced from renewable and sustainably sourced raw materials from the forest.  With increasing demand for sustainable fibers and in order to reach our own sustainability goals, we depend on new innovative technology that allows for scalable production with limited environmental impact.

The technology TreeToTextile work with means less use of energy, chemicals and water when benchmarked to the production of conventional fibers. The novel process is deliberately designed to have low energy demand and low chemical need, engineered to suit large scale production and includes a recovery system for reusing chemicals.

“This investment and construction of the demonstration plant marks an important and exciting milestone for TreeToTextile. Paving the way towards commercialisation of their sustainable fiber not only aligns perfectly with H&M Group’s vision to become fully circular, but also has the potential to benefit the entire textile industry.”


              Joel Ankarberg, Head of Strategy and Transformation H&M Group


The demonstration plant, which will be located in Stora Enso’s Nymölla mill in southern Sweden, is estimated to cost €35 million, fuelled by an investment of €27,4 million from the owners in addition to €7,6 million from Swedish Energy Agency. The plant’s production capacity will be 1 500 tons per year and construction is scheduled to start in spring 2021.