The companies agree to supply brand partners with lyocell fibres in both standard and non-fibrillating forms, all manufactured using Circulose pulp.

For this year, commercial supply will be limited to a select group of brands. For brands aiming for availability in 2027, Circulose is encouraging them to begin product development discussions now.

Lyocell fibres use a solvent-based spinning technique in a system where the solvent is largely recovered and reused, reducing environmental impact. When using recycled pulp instead of virgin wood, the process increases environmental benefits.

Circulose and CTA plan to build on this advantage by using Circulose pulp made from recycled textiles.

CTA has committed to purchasing a specified volume of Circulose pulp over the next several years as part of this collaboration. It will commercialise lyocell made with Circulose through Circulose's licensing model.

Both companies intend to improve Circulose pulp quality, and enhance lyocell fibre production capacity by refining manufacturing processes and working closely together.

Circulose CEO Jonatan Janmark 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, part of the China General Technology (Group), is a producer of lyocell fibre and one of the leading research and industrial platforms for textile innovation in China.

The company manages commercial lyocell production facilities and has developed proprietary lyocell fibre technologies for lyocell fibre variants.