Circulose has signed a new commercial agreement with China Textile Academy Green Fibre (CTA) aimed at bringing larger volumes of lyocell made from recycled-textile pulp to market. Under the deal, CTA will manufacture and supply lyocell fibres from Circulose pulp to brand partners, with the two companies positioning the partnership as a step toward wider adoption of circular cellulosic materials.
The agreement covers both standard and non-fibrillating lyocell variants, with all fibres produced using Circulose pulp. Supply in 2026 will be restricted to a limited number of brands, Circulose said, while companies seeking broader availability in 2027 are being urged to start product development conversations now in order to be ready for future allocations.
Lyocell is produced using a solvent-spinning method in which the solvent is largely recovered and reused, helping lower environmental impact compared with less closed-loop processes. Circulose argues the environmental case strengthens further when recycled pulp replaces virgin wood input—an advantage it aims to push by supplying pulp made from discarded textiles.
As part of the collaboration, CTA has agreed to purchase a defined volume of Circulose pulp over the next several years. CTA will commercialise the resulting lyocell through Circulose’s licensing model, which is designed to scale output through manufacturing partners rather than through Circulose building all production capacity itself.
The companies said they will also work jointly on technical improvements, with efforts planned to raise pulp quality and expand lyocell manufacturing capacity by refining production processes and coordinating closely on performance requirements.
Circulose CEO Jonatan Janmark said the partnership is notable because lyocell production can be less forgiving than other regenerated cellulosic routes, making the use of recycled feedstock harder to execute consistently. “Lyocell is a more sensitive process than viscose, making the use of recycled pulp more challenging. 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 part of China General Technology (Group) and operates both as a lyocell producer and as a research-and-industrial platform for textile innovation in China. The company runs commercial lyocell facilities and has developed proprietary technologies for multiple lyocell fibre variants.
If the collaboration scales as planned, the partnership could provide brands with a more reliable route to lyocell fibres from Circulose pulp—supporting circular sourcing goals while increasing the share of fibres made from post-consumer textile waste.
