Sundsvall – Circulose has entered into a collaboration with China Textile Academy Green Fibre (CTA) to develop and supply lyocell fibres produced using Circulose recycled pulp, with initial commercial volumes planned for 2026 and broader availability from 2027.
The agreement is intended to accelerate the use of textile-to-textile recycled raw materials in lyocell for a wider range of textile applications, including knitted and woven products.
Lyocell fibres are produced via a solvent-based spinning route in which cellulose is dissolved and extruded in a largely closed-loop system, with most of the solvent recovered and reused. In combination with recycled pulp in place of conventional wood-based feedstock, the process offers mills and brands a lower-impact cellulosic option while retaining the fibre’s established attributes of strength, softness and comfort in end-use fabrics.
Under the partnership, CTA and Circulose will offer brand partners lyocell fibres in both standard and non-fibrillating grades, each based on Circulose pulp. Non-fibrillating variants are of particular interest for knitters and weavers seeking smooth fabric surfaces, controlled pilling behaviour and a stable handle in applications such as fine gauge jersey, underwear and lightweight fashion knits.
Supply in 2026 will be limited and focused on selected brand partners, with Circulose and CTA positioning this phase as an opportunity for joint product development and qualification work. The partners aim to scale production capacity in 2027 to meet wider demand, giving mills and brands a clearer pathway to integrate recycled lyocell into medium-term sourcing and capacity planning.
As part of the agreement, CTA has also committed to purchase a defined volume of Circulose pulp over the coming years, providing demand visibility for Circulose’s recycling operations. The companies expect that close technical collaboration will support incremental improvements in pulp performance and quality, while CTA optimises its lyocell manufacturing processes for higher recycled content at commercial scale.
“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, part of China General Technology (Group) Holding Co. Ltd., produces lyocell fibres on commercial lines and has developed proprietary technologies for advanced lyocell variants. Its position within one of China’s major textile research and industrial platforms underlines the strategic intent to develop differentiated, value-added lyocell products for both domestic and international brands.
For knitting and hosiery manufacturers, the collaboration signals a future supply stream of recycled-content lyocell aimed at a variety of fabric constructions, from circular and flat-knitted fashion and sportswear to woven applications.
