A solution containing cellulose dissolved in a tertiary amine N-oxide solvent containing a nonsolvent for cellulose such as water is shaped by extrusion or other shaping process to form a shaped cellulose fiber, rod, plate, tubing or film. The extruded shaped article is stretched in air while still a solution to impart improved physical properties thereto and the cellulose is precipitated from the shaped solution to set the properties without additional drawing. The solution may be prepared by dissolving cellulose in the tertiary amine N-oxide solvent in the barrel of an extrusion apparatus, extruding the solution, orienting by stretching the resulting product in air while still a solution and then precipitating the cellulose from the shaped article before significant degradation of the cellulose. The cellulose and tertiary amine N-oxide may be ground to substantially the same particle size before charging the extruder barrel. The tertiary amine N-oxide is recovered and recycled to avoid environmental pollution problems. The resulting cellulose fibers or films can be used to make fabrics, wrapping or packaging materials or nonwoven products.