Circulose has entered into a collaboration with China Textile Academy Green Fibre (CTA) to introduce commercially produced lyocell fibres made using CIRCULOSE® recycled pulp, expanding textile-to-textile recycling opportunities for the global textile industry.
The partnership marks an important step in making recycled lyocell fibres available for a broader range of textile applications. Lyocell fibres are produced through a solvent-based spinning process and are recognised for their strength, softness and sustainability attributes. The manufacturing process operates in a largely closed-loop system, where solvents are recovered and reused, further reducing environmental impact. Using recycled CIRCULOSE® pulp instead of virgin wood-based raw materials is expected to enhance the sustainability profile of the fibre.
Under the agreement, CTA and Circulose will supply brand partners with both standard and non-fibrillating grades of lyocell fibres manufactured using CIRCULOSE® pulp.
Commercial supply will be limited during 2026, with initial volumes available only to selected brands. The partners aim to expand production capacity during 2027, while encouraging interested brands to begin product development activities in advance.
As part of the collaboration, CTA has also committed to purchasing a fixed volume of CIRCULOSE® pulp over the coming years. The companies expect the partnership to support continuous improvements in pulp quality and performance while enabling CTA to optimise manufacturing processes and increase recycled lyocell production capacity.
The agreement is also intended to provide greater demand certainty for textile recyclers, encouraging investment, reducing production costs and supporting the wider adoption of circular textile fibres across the industry.
Commenting on the collaboration, Jonatan Janmark, CEO of Circulose, said:
“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 a producer of lyocell fibres and operates under China General Technology (Group) Holding Co. Ltd. The company operates commercial-scale lyocell production facilities and has developed proprietary technologies for advanced lyocell fibre variants.

