Lenzing CEO: Textile market pivoting toward sustainability

The most significant shift in China's textile market lies in a strategic pivot by domestic brands, from cost-driven production to prioritizing sustainability and innovation, and this transformation, coupled with China's robust industrial foundation, has created a unique "innovation ecosystem "that is reshaping global textile dynamics, according to Rohit Aggarwal, CEO of Lenzing Group.

In an exclusive interview during the 2025 Intertextile Shanghai Expo autumn edition held earlier this month, Aggarwal outlined Lenzing's strategic alignment with this trend, showcasing the company's "Big Five Fibers" and newly launched "Lenzing Pro" digital platform at the expo.

The Austrian fiber giant's exhibition area, featuring 43 value chain partners, underscored how global innovators are supporting China's textile upgrade amid supportive government policies and evolving consumer demands.

"We're witnessing a remarkable shift in China's textile landscape — domestic brands are not only increasing their collaborations with innovative material suppliers like Lenzing but are also elevating their product offerings to unprecedented levels of quality and sophistication," Aggarwal said.

He emphasized China's two key strengths as being critical to this transformation: "China's super-large market scale and solid textile industry foundation are the 'dual engines' of the global industrial chain."

This shift comes as China accelerates its green manufacturing agenda. The State Council's approval of an action plan for advancing the green and low-carbon development of manufacturing (2025-27) emphasizes advanced green technologies and circular economy practices, creating a policy environment that aligns with Lenzing's sustainability-focused strategy.

Aggarwal highlighted China's unique capability to rapidly commercialize innovations.

"When we launch special specifications of Tencel brand or Lenzing Ecovero brand, Chinese enterprises can efficiently complete the transformation from fibers to end-products," he said.

This efficiency has made China more than just a market for Lenzing — it's an "innovation community," as described by Aggarwal, where "the efficiency and innovation of enterprises here are the core driving forces for us to deepen our presence".

Lenzing's commitment to China's green transition is exemplified by its Nanjing facility, which has operated entirely on renewable electricity since 2023, reducing annual carbon emissions by 100,000 metric tons.

"From a financial perspective, the Chinese market is at the core priority in the group's global capital allocation," said Nico Reiner, CFO of Lenzing Group. "The investment return rate of the Chinese market is good. The cost control and profit level of production bases in Nanjing and other places have brought more stable cash flow and asset appreciation. More importantly, the Chinese market has strong growth resilience, and the demand for sustainable and high-end fibers has maintained good growth, providing long-term certainty for capital allocation and supporting future revenue and profit growth."