A manufacturing cellulose fiber made by direct dissolution of wood pulp in an amine oxide solvent, N-methylmorpholine-N-oxide. The clear solution is extruded into a dilute aqueous solution of amine oxide, which precipitates the cellulose in the form of filaments. The fiber is then washed before it is dried and finished.

The solvent spinning process for making lyocell fiber is considered to be environmentally friendly because the non-toxic spinning solvent is recovered, purified, and recycled as an integral part of the manufacturing process. No chemical intermediates are formed, the minimal waste in not hazardous, and energy consumption is low. Wood pulp is a renewable resource, and the fiber is biodegradable.