Functional protein filaments in the cell commonly treadmill - grow and shrink on opposite ends, driven by energy consumption. Treadmilling causes filaments to seem as if they were moving, even though the individual proteins remain static. Here we investigate the role of treadmilling, implemented as dynamic turnover, in the collective filament self-organisation. On the example of the bacterial FtsZ protein, a highly evolutionary conserved tubulin homologue, we show, in computer simulations and in vitro experiment, that treadmilling drives filament nematic ordering by means of dissolving misaligned filaments. We demonstrate that this ordering via local dissolution allows the system to quickly respond to chemical and geometrical biases in the cell, and is necessary for the formation of the bacterial division ring in live Bacillus subtilis. We finally use simulations to quantitatively explain the characteristic dynamics of FtsZ division ring formation measured in vivo. Beyond FtsZ and cytoskeletal filaments, our study identifies a novel mechanism for nematic ordering via constant birth and death of energy-consuming filaments.