news
Industry news

Lenzing Group Intends To Acquire Remaining 30 Percent Of Its Chinese Operation

  • Important step for further growth with specialty fibers
  • Transaction generates negative impact on net profit of approx. EUR 21 mn
  • Lenzing Group will hold 100 percent of Lenzing (Nanjing) Fibers Co. Ltd. after closing

 

The Lenzing Group intends to acquire the remaining 30 percent of its Chinese subsidiary Lenzing (Nanjing) Fibers Co. Ltd. (LNF) from its state-owned joint venture partner NCFC. After closing of the transaction, the Lenzing Group will hold 100 percent of LNF.

 

The underlying structured selling process was initiated by the joint venture partner in a state controlled bidding process and today the Lenzing Group received the Share Purchase Agreement draft. The closing of the transaction documents is expected for the end of October. The acquisition will have a negative impact on net profit of the Lenzing Group of approx. EUR 21 mn for the fiscal year 2018.

 

The purchase of the shares supports Lenzing’s strategic growth as a producer of specialty fibers from the renewable raw material wood in China and worldwide. It paves the way to setting up further production lines for specialty fibers. Lenzing wants to convert LNF into a specialty fibers hub over time.

Textile Excellence

savio’s ecopulsars presents a new concept in winding technology

tai to hold global meet on textile 4.0

Subscribe To Textile Excellence Print Edition

If you wish to Subscribe to Textile Excellence Print Edition, kindly fill in the below form and we shall get back to you with details.