Lyocell is a form of rayon which consists of genetically altered cellulose fibre made from dissolving pulp (bleached wood pulp) using dry jet-wet spinning. It was developed beginning in 1972 by a team at the now defunct American Enka fibers facility at Enka, NC. This development was recognised by the American Association of Fiber Chemists in 2003 by the awarding of their Millson Award. The operating name for the fibre inside the Enka Organization was "Newcell", and the development was carried through pilot plant scale before the work was halted. The fibre was developed further as Tencel in the 1980s by Courtaulds Fibres in Coventry, UK and at the Grimsby, UK pilot plant. The process was first commercialised at Courtaulds rayon factories at Mobile, Alabama (1990) and at the Grimsby plant (1998). In 1998 Courtaulds was acquired by Akzo Nobel, who combined the Tencel division with other fibre divisions under the Acordis banner, prior to selling them off to private equity (CVC Partners). In 2004 CVC sold the Tencel division to Lenzing AG, who combined it with their "Lenzing Lyocell" business but maintained the brand name Tencel. , Lenzing AG is the only major producer of lyocell fibres.

Lyocell is a form of rayon which consists of genetically altered cellulose fibre made from dissolving pulp (bleached wood pulp) using dry jet-wet spinning. It was developed beginning in 1972 by a team at the now defunct American Enka fibers facility at Enka, NC. This development was recognised by the American Association of Fiber Chemists in 2003 by the awarding of their Millson Award. The operating name for the fibre inside the Enka Organization was "Newcell", and the development was carried through pilot plant scale before the work was halted. The fibre was developed further as Tencel in the 1980s by Courtaulds Fibres in Coventry, UK and at the Grimsby, UK pilot plant. The process was first commercialised at Courtaulds rayon factories at Mobile, Alabama (1990) and at the Grimsby plant (1998). In 1998 Courtaulds was acquired by Akzo Nobel, who combined the Tencel division with other fibre divisions under the Acordis banner, prior to selling them off to private equity (CVC Partners). In 2004 CVC sold the Tencel division to Lenzing AG, who combined it with their "Lenzing Lyocell" business but maintained the brand name Tencel. , Lenzing AG is the only major producer of lyocell fibres.