Courtaulds
Historic British textile, man-made-fibre and chemicals group that became a global leader in rayon and later developed the Tencel lyocell brand.
Last updated August 22, 2026
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Overview
Courtaulds was a major British industrial group whose activities spanned silk and crepe manufacture, textiles, clothing, artificial fibres and chemicals. Its origins date to 1794, when George Courtauld established a silk business in north Essex. Under the management of his son Samuel Courtauld and later generations of the family, the enterprise expanded through mills at Braintree, Halstead and Bocking. By the middle of the nineteenth century it employed more than 2,000 people and had become an important British silk manufacturer. The decisive transformation came in the early twentieth century. Seeking to reduce its dependence on natural silk, Courtaulds acquired patents relating to the viscose process in 1904 and opened a production facility at Coventry the following year. Viscose rayon and acetate enabled the company to move from traditional silk weaving into the rapidly expanding market for man-made fibres. In 1909 it entered North America through the American Viscose Corporation. During the interwar period it expanded through acquisitions, international investments and ventures including British Cellophane, founded in 1935. By the end of the Second World War, Courtaulds was one of the principal groups controlling Europe's man-made-fibre industry. After the war, the company broadened its industrial base. It acquired textile businesses, developed chemical operations and became one of the world's largest textile manufacturers. Its economics department was unusually influential in British industry, contributing to investment analysis and trade-policy work while helping management assess the company's increasingly international portfolio. A hostile takeover attempt by Imperial Chemical Industries in 1962 failed. Courtaulds nevertheless faced growing competitive pressure, especially from lower-cost Asian textile producers. In March 1990 the group was divided into Courtaulds plc, containing the fibres and chemicals activities, and Courtaulds Textiles Ltd, containing yarn, fabric and clothing operations. Courtaulds plc concentrated on higher-value industrial and material businesses and developed Tencel, a lyocell fibre made through a solvent-spinning process that avoided carbon disulfide. Pilot production began in 1990 and the Mobile, Alabama plant reached full production in 1993. The company also continued to rationalise older viscose capacity and close or consolidate less competitive facilities. Courtaulds plc merged with Akzo Nobel in June 1998 following regulatory approval conditional on the sale of its aerospace business. The Courtaulds name was subsequently removed from most of the combined group's operations. Its fibre activities were reorganised under Acordis and later sold to CVC Capital Partners; the Tencel business was sold to Lenzing in 2000, which retained the Tencel brand. Courtaulds Aerospace was sold to PPG Industries in 2000. Courtaulds Textiles followed a separate path: Sara Lee acquired it in 2000, and a Hong Kong-led consortium acquired the division in 2006. Thus Courtaulds ceased to exist as a unified corporate group, although several technologies, operations and consumer brands continued under new ownership.
History
Courtaulds began in 1794 as George Courtauld & Co, a silk and crepe manufacturer founded by George Courtauld in Pebmarsh, Essex. His son Samuel Courtauld and cousin Peter Taylor expanded the business, establishing mills in Halstead, Bocking and Braintree. Steam power and power looms were introduced during the first half of the nineteenth century. By 1850 the company employed more than 2,000 people across three silk mills, although its production system remained heavily dependent on female mill labour. The company’s strategic shift toward artificial fibres began with its 1904 acquisition of Cross and Bevan patents covering the viscose process. A Coventry plant began producing artificial silk in 1905, and the first yarns were woven at Halstead in 1906. Technical improvements made the process commercially successful, turning Courtaulds into a leading man-made-fibre producer. The company established the American Viscose Corporation in 1909 and later developed interests in acetate, cellophane and international fibre manufacturing. Courtaulds benefited from British tariff protection for rayon during the interwar period and expanded through European interests and joint ventures. British Cellophane was established in 1935. After 1945, Courtaulds was among the dominant groups in the European man-made-fibre sector, with operations or investments in France, Germany and Italy. It also diversified into textile manufacture, clothing and chemicals. Acquisitions in the 1960s included Fine Spinners and Doublers and the Lancashire Cotton Corporation. The company resisted an attempted takeover by Imperial Chemical Industries in 1962. In the postwar decades it developed a reputation for analytical corporate planning, aided by an economics department that contributed to investment and trade-policy decisions. By the mid-1970s Courtaulds had become one of the world's largest textile manufacturers. The 1980s brought severe pressure from Asian producers and the relocation of clothing production toward Southeast Asia and China. Courtaulds closed or rationalised British factories while investing in newer fibre technologies. Research into solvent-spun cellulose fibres led to Tencel, a lyocell product that avoided the carbon disulfide used in conventional viscose production. Pilot production began in 1990 and the Mobile, Alabama facility reached full output in 1993. In March 1990 Courtaulds split into Courtaulds plc and Courtaulds Textiles Ltd. Courtaulds plc retained fibres and chemicals, while the textiles company focused on yarn, fabric and clothing. The plc merged with Akzo Nobel in June 1998. Its former fibre assets were reorganised as Acordis and eventually sold, with Lenzing acquiring Tencel in 2000. PPG acquired Courtaulds Aerospace in the same year. Sara Lee acquired Courtaulds Textiles in 2000, and a Hong Kong-led consortium bought that division in 2006. The original corporate group therefore disappeared, but the Tencel name and various consumer, textile and industrial activities survived under successor owners.
- 2000
Tencel and aerospace assets transferred
[1]Lenzing acquired the Tencel division and PPG Industries agreed to acquire Courtaulds Aerospace.
- 1998
Merger with Akzo Nobel
[1]Courtaulds plc merged with Akzo Nobel, ending the independent plc.
- 1993
Tencel plant reaches full production
[1]The Mobile, Alabama Tencel plant reached reported full production capacity.
- 1990
Corporate demerger
[1]Courtaulds separated into Courtaulds plc and Courtaulds Textiles Ltd.
- 1962
ICI takeover attempt defeated
[1]Imperial Chemical Industries launched an unsuccessful hostile bid for Courtaulds.
- 1935
British Cellophane founded
[1]Courtaulds expanded its cellulosics portfolio through the creation of British Cellophane.
- 1909
North American cellulosics entry
[1]The American Viscose Corporation was established to develop the company's North American business.
- 1904
Viscose patents acquired
[1]Courtaulds acquired patents that enabled production of viscose artificial silk.
- 1850
Expansion of silk manufacturing
[1]The company employed more than 2,000 people across three silk mills.
- 1794
Silk business founded
[1]George Courtauld established George Courtauld & Co in Essex as a silk and crepe manufacturer.
Products and positioning
Historic integrated British manufacturer combining textile heritage with large-scale man-made-fibre, materials and chemical production.
Man-made fibre · 1905
Viscose rayon
Courtaulds’ adoption of the viscose process transformed it from a traditional silk producer into a major artificial-fibre company. Viscose rayon became one of its principal products and was manufactured through British and international operations.
Cellulosic fibre
Acetate fibre
Acetate formed part of Courtaulds’ broader cellulosics portfolio alongside viscose. The company marketed cellulosic materials in Europe and North America through subsidiaries, investments and joint ventures.
Lyocell fibre · 1990
Tencel
Tencel was Courtaulds’ branded lyocell fibre, developed through solvent-spinning research during the 1980s. It was designed to avoid carbon disulfide and became a significant late-period technology investment. The brand was retained by Lenzing after the business was sold.
Cellulosic film · 1935
Cellophane
Courtaulds participated in the cellophane business through British Cellophane, founded in 1935 as part of its interwar expansion in cellulosic materials.
Industrial chemicals
Aerospace coatings and sealants
Courtaulds Aerospace supplied coatings, glazing sealants and aerospace sealants from facilities in the United States, the United Kingdom and France, supported by application centres in several regions.
Controversies
2000
Alabama carbon-disulfide pollution case
Courtaulds Fibers Inc. was found negligent in relation to carbon-disulfide pollution outside its Axis, Alabama plant and compliance with United States air-quality requirements.
1989
Ontario rayon pollution criticism
Courtaulds’ Canadian rayon operations were criticised over wastewater discharges containing acids, zinc, suspended solids and other contaminants.
1960
Suppression of occupational-health research
Reference material reports that Courtaulds worked to prevent publication in the United Kingdom of research concerning health risks associated with carbon disulfide exposure among rayon workers.
Brand decisions
1998
Merger with Akzo NobelM&ABackground
Courtaulds plc sought a combination with a major international chemicals and fibres competitor.
Action taken
The companies merged after European Commission approval subject to the disposal of Courtaulds Aerospace.
Aftermath
The Courtaulds corporate name was subsequently discontinued and its former divisions were reorganised or sold.
1990
Demerger of textiles and fibresStrategyBackground
Asian competition was weakening the economics of textile and clothing manufacture, while fibres and chemicals generated a greater share of profits.
Action taken
The group separated Courtaulds plc from Courtaulds Textiles Ltd.
Aftermath
The plc concentrated on fibres and chemicals and later merged with Akzo Nobel; the textiles business was sold separately.
1904
Move into viscose fibresStrategyBackground
Dependence on natural silk exposed the traditional business to supply and market risks.
Action taken
Courtaulds acquired patents for the viscose process and built a production facility in Coventry.
Aftermath
The investment became the foundation of Courtaulds’ rise as a global man-made-fibre producer.
Recent events
- 2000
PPG Industries agrees to acquire Courtaulds Aerospace[1]
M&A
PPG announced an agreement to acquire the aerospace coatings and sealants business for US$512.5 million.
- 2000
Sara Lee acquires Courtaulds Textiles[1]
M&A
Sara Lee acquired the separated textiles and clothing division in a hostile takeover.
- 1998
Courtaulds plc merges with Akzo Nobel[1]
M&A
Akzo Nobel combined with Courtaulds plc after European regulatory approval, subject to disposal of the aerospace business.
- 1990
Courtaulds demerges into Courtaulds plc and Courtaulds Textiles[1]
M&A
The group separated its fibre and chemicals operations from its textile and clothing activities in response to changing competition and differing profitability.
Sources1 sources
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