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STOCKHOLM - TreeToTextile, a company jointly owned by H&M, IKEA, pulp manufacturer Stora Enso and LSCS Invest, is building a €35 million (US$42.5m) demonstration plant in Sweden to produce its sustainable new textile fibre.

The facility is seen as a critical step towards commercialising the bio-based fibre - based on regenerated cellulose from trees - which the partners aim to make available to the entire industry.

The plant will be established at Stora Enso’s Nymölla mill in southern Sweden with construction due to start in the spring. The production capacity will be 1,500 tons of fibre per year.

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