Austria: Lenzing reviews cost structure after Q3 results

Company Performance

Austria: Lenzing reviews cost structure after Q3 results

The Lenzing Group, a world leading manufacturer of manufactured (man-made) cellulose fibers plans to review its costs as the company witnesses stiff competition from cotton producers. Lenzing, despite adverse market conditions retracted an expected result due to the invention of ongoing counter-measures in the first three quarters of 2013.

Lenzing CEO Peter Untersperger said: "The difficult market conditions in 2014 may continue into 2015. We will counter this situation with determination and adjust our cost structure to the new circumstances soon. Our goal must be not only our leadership in quality and innovation our long term expand, but also recover the cost leader in our industry. We continue to see attractive growth potential for our products, but equip us today for the best possible competition has become sharper. Cost control and cash generation are the targets for the coming years. "

The company plans to eliminate up to 600 jobs and has decided to proactively implement a massive, far-reaching cost optimization program. The initiative is expected to enable cost savings of EUR 120 million until 2015.