Lenzing Invests More Than EUR 100 Mln In New Production Capacities In Austria

Company Performance

Lenzing Invests More Than EUR 100 Mln In New Production Capacities In Austria

The Lenzing Group is expanding its capacities for specialty fibres. Particularly the importance of the manufacturing facility in Heiligenkreuz, Burgenland, is underpinned. Further investments will be made as well at the production site in Lenzing. "We will invest more than 100 million Euro over the next 20 months to expand production capacities for our high-quality botanic fibres, 70% at the Heiligenkreuz site and 30% at Lenzing", says Lenzing's CEO Stefan Doboczky. "Given the strong market demand, this expansion will help our customers in their growth plans as well as expanding our global market leadership position for speciality fibres."

As part of its new group strategy score TEN, Lenzing set the target of increasing the share of specialty fibres as a proportion of its total revenue to 50% by the year 2020. Specialty fibres currently account for 41.7% of revenue. The planned capacity expansion of 35,000 tons of specialty fibres at the sites in Heiligenkreuz and Lenzing, as well as at the site in Grimsby, Great Britain, is the first step of the announced speciality fibre expansion programme of Lenzing AG. Customers will be able to take advantage of some 10,000 tons of specialty fibre capacity already by the end of this year.

The major part of investments will be carried out in the years 2016 and 2017. The Lenzing Group will fully utilise its in-house engineering competence, supported by local construction companies and suppliers for these projects. The investment in Heiligenkreuz will create 25 new jobs (full-time equivalents). Lenzing AG decided to start its investment programme for speciality fibres at its existing sites in Austria and the UK as it allows fast capacity ramp up.

The strategic role of the Heiligenkreuz site as a key location of new types of TENCEL® premium fibres developed by researchers and application engineers in Lenzing in cooperation with customers is strongly underpinned.

1. Expansion of capacities for specialty fibres by 35,000 tons by mid 2018

2. About 70 mln Euro of investments in Heiligenkreuz and 30 mn Euro at the Lenzing site

3. Strategic importance of Heiligenkreuz as site for TENCEL® premium fibres underpinned