China’s leading viscose fiber manufacturer has established a new standalone business focused on lyocell, aiming to transform six years of capacity development into a recognized and trusted industry asset. This move is designed to appeal to a long, fragmented supply chain by emphasizing quality and reliability.
The new company is anchored on three core principles: scale, expertise, and trust, according to the company’s President. These aren’t just marketing buzzwords but foundational commitments. Scale is demonstrated through an integrated supply chain—from forest to pulp to fiber—and four specialized production facilities, each targeting different product segments. Expertise is showcased via proprietary technology and a dedicated application research center dedicated to advancing lyocell innovations. Trust is built on sustainable, closed-loop manufacturing processes and third-party certifications that verify the company’s environmental claims.
The launch coincides with a global lyocell capacity exceeding 1.3 million tons annually, with the fiber gaining traction from a niche, eco-conscious option to a mainstream material. Meanwhile, regulatory agencies across Europe have increased scrutiny of environmental marketing claims, emphasizing the importance of transparent and verifiable sustainability.
Export data reveals that China’s lyocell exports surged by 49% in the first 11 months of the previous year, reaching 108,000 tons, driven by expanding domestic capacity. Conversely, imports declined 14%, totaling 89,000 tons, indicating a strengthening local industry. For upstream suppliers, this shift underscores the value of verifiable, branded sustainability credentials—an increasingly critical factor in a market where large-scale supply has historically lacked brand differentiation.
The company entered the lyocell arena in May 2020 with a 20,000-ton facility in Rizhao, Shandong, when global adoption of the fiber was still limited. Since then, it has established additional plants in Changzhou and Nantong, both in Jiangsu Province, along with a facility in Jining, Shandong, expanding toward a total capacity of 600,000 tons annually.
While expanding capacity was a necessary step, industry leaders recognize that it’s no longer enough. The supply chain is complex and highly specialized, with many players involved. Customers seek a partner that is recognizable, professional, large, and trustworthy to guide them through ongoing innovation.
This entity’s approach shifts the focus from merely selling fiber to building strategic partnerships. One key differentiator is technical expertise, particularly in addressing fiber fibrillation—a texture change during dyeing and finishing. The company developed a specialized cross-linked lyocell variant and collaborated with dye houses to implement solutions, gaining broader industry acceptance. Engaging directly with downstream clients—visiting factories, testing processes, and sharing findings—helps ensure quality and reliability at every step.
Helping downstream partners overcome technical challenges is seen as a core value. The company is also extending its reach into nonwoven applications such as wipes and personal-care products by creating joint development projects with yarn spinners, fabric manufacturers, and brands—favoring true supply chain collaboration over traditional buyer-seller relationships.
Sustainability is woven into the fiber’s story, emphasizing both production economics and responsible sourcing. The fiber is produced from sustainably farmed wood pulp using a closed-loop process with N-Methylmorpholine N-oxide (NMMO), a non-toxic solvent that is recovered and reused at a rate of 99.7%. The resulting fiber is fully biodegradable.
Sustainability initiatives include reducing emissions at manufacturing sites, establishing supply chain traceability from pulp to finished garments, and assisting downstream brands in adopting greener practices. Brands can attach tags with scannable codes that trace raw material origins, meeting increasing consumer demand for transparency and verifiable environmental claims.
This aligns with upcoming European regulations, which are set to restrict unsubstantiated eco-friendly claims and require companies to provide verifiable evidence. Consumer interest in sustainably marketed textiles continues to grow, with searches for chemical-free textiles increasing significantly last year. Demographics show that many environmentally conscious shoppers also prioritize durability and versatility, broadening the appeal of fibers like lyocell. Demand from sectors including sportswear, outdoor gear, and home textiles is rising, driven by lyocell’s eco-friendly and biodegradable qualities.
The company’s manufacturing footprint expands further with a new production line at its Jining plant, operational since March. Currently, it operates 15 cellulosic fiber factories in China, with combined capacities exceeding two million tons of viscose and lyocell—scale that smaller producers find difficult to match.