Material Insights · Understanding the Material World

Viscose fibre: Production

China, India's Birla and Austria's Lenzing lead

China, India's Birla and Austria's Lenzing lead What this tab covers Who makes it and how much: world capacity and output, utilisation, the top producing countries and companies globally and in India, concentration, new capacity coming, and each region's position.
MeasureFigureDetailSource
World capacitynot published in sources reached; Canopy's 2024 assessment of 28 of 35 MMCF producers covered 97.5% of global capacityESG Dive, Dec 2024
World output8.4 Mt MMCF (2024), of which viscose about 6.7 Mt (derived)Textile Exchange 2025
Capacity utilisationnot publishedChinese CSF inventories averaged 14 days in Q4 FY2025 (January-March 2025) versus 13 days in FY2024 (Grasim). Lenzing's fibre sales fell 6% in 2025 to 904 kt.Grasim Q4 FY2025; Lenzing FY2025 presentation
ConcentrationChina about 65%; top three countries about 85% (indicative)Large producers are Sateri (RGE group), Aditya Birla (Birla Cellulose), Lenzing, Tangshan Sanyou and Xinjiang Zhongtai (indicative). Top-5 company share is not published.indicative
New capacitylyocell is where new capacity is goingGrasim 110 kt/yr lyocell at Harihar (first 55 kt by mid-2027, ₹1,350 crore). Lenzing is investing €15 million in premium nonwoven fibre capacity and took control of TreeToTextile. Generic Chinese lyocell capacity more than doubled in three years (Lenzing).Grasim Q3 and Q4 FY2025; Lenzing FY2025 presentation

Top producing countries

China 65% · about 4.4 Mt viscose (indicative) India 10% · about 0.85 Mt CSF sales by Grasim (FY2025, annualised from 636 kt in April-December 2024) Indonesia 10% · Sateri/Asia Pacific Rayon, Lenzing (South Pacific Viscose), Aditya Birla (Indo Bharat Rayon) (indicative) Austria and rest of Europe 5% · Lenzing (Austria), Kelheim (Germany) and others (indicative) Thailand 3% · Aditya Birla (Thai Rayon), Lenzing lyocell (indicative) indicative (basis: industry estimates of China's share of VSF capacity); Grasim Q3 FY2025; share derived on 8.4 Mt MMCF and indicative; indicative; Lenzing booked an €82 million impairment on its Indonesian site in 2025 and is reviewing a sale; indicative

Largest producers: global

CompanyCountryVolumeYearSource
Aditya Birla Group (Birla Cellulose; Grasim in India) plus group plants in Thailand, Indonesia and China; specialty fibres 21% of Grasim's mix India636 kt CSF sales, Grasim, April-December 2024 9M FY2025Grasim earnings presentation Q3 FY2025
Lenzing revenue €2,602 million; adjusted EBITDA €426 million; 1,218 kt pulp output Austria904 kt fibre sales (viscose, modal, lyocell) 2025Lenzing FY2025 results presentation
Sateri (RGE) often cited as the largest viscose producer; not published in sources reached China / Indonesianot published 2025indicative
Tangshan Sanyou not published Chinanot published 2024ESG Dive (Canopy joint top score, 2024)
Xinjiang Zhongtai Chemical integrated with chlor-alkali; not published Chinanot published 2025indicative
Kelheim Fibres specialty viscose for nonwovens; not published Germanynot published 2025indicative

Largest producers: India

CompanyCountryVolumeYearSource
Grasim Industries (Birla Cellulose) plants at Nagda, Harihar, Kharach and Vilayat (indicative); FY2025 cellulosic fibres revenue ₹15,897 crore; lyocell 43 kt/yr rising to 153 kt/yr India636 kt CSF sales (April-December 2024) 9M FY2025Grasim Q3 FY2025
Century Rayon (Century Textiles) VFY, not staple; capacity not published in sources reached Indianot published 2025indicative

Grasim is effectively India's only large viscose staple producer (indicative) and also exports. Domestic CSF sales grew 4% in Q4 FY2025 while total volume was flat (Aditya Birla). The BIS quality-control order on VSF imports was revoked by the Ministry of Textiles with immediate effect on 18 November 2025 to ease raw-material access for spinners (News On AIR).

Position by region

RegionPosition
USLittle viscose production; imports fibre and fabric.
EULenzing and Kelheim focus on premium, low-impact fibres; EUDR covers wood pulp imports (indicative).
IndiaGrasim dominant; VSF QCO revoked November 2025; dissolving pulp is largely imported (indicative); 50% US tariffs weigh on garment exporters (CRISIL).
ChinaAbout two-thirds of world viscose and fast-growing generic lyocell; sets world prices.
JapanSmall specialty output (indicative).
Middle EastNot a producer; supplies sulphur for the sulphuric acid and CS2 chain.