Stora Enso acquires stake in Ikea joint venture

08.01.2019 − 

Founded in 2014 by the Inter Ikea Group, the fashion group H&M and the developer Lars Stigson, the joint venture TreeToTextile aims to initiate the industrialization phase with the entry of Stora Enso. Stora Enso intends to set up a demonstration plant at one of its Scandinavian sites for the process developed by TreeToTextile for the production of textile fibers from cellulose.

According to TreeToTextile, the process, which uses residual wood from forestry as a raw material, uses less energy and chemicals than conventional processes. This leads to lower production costs. The process, which has so far been tested in a pilot plant in Sweden, is to be brought to a larger scale with the demonstration plant now planned at Stora Enso. Inter Ikea and H&M intend to use the fibers produced there in their products. Marketing to external customers is also planned.

Stora Enso's stake in TreeToTextile was announced in mid-December. The four joint venture partners each hold a 25 % stake in the company. The demonstration plant will be built by Stora Enso's Biomaterials business unit, headed by Markus Mannström, which currently produces dissolving pulp for the textile industry.

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