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Corporate Update

Lenzing Commits EUR 15 Million To Expand Nonwoven Capacity For Global Hygiene Market

• By  Textile Excellence
• November 24, 2025

Lenzing Group has approved an investment of EUR 15 million to strengthen its position in the fast-growing global hygiene market. The company plans to expand production capacity for its VEOCEL branded lyocell fibres, which are widely used in baby wipes, personal care wipes, feminine hygiene products and medical nonwovens. The move signals a firm push toward sustainable, plastic free alternatives in a market that is shifting rapidly toward biodegradable raw materials.

Executives at Lenzing noted that demand for specialty cellulosic fibres continues to rise at more than 7% annually as global brands and retailers scale their commitments to single use plastic reduction. VEOCEL fibres, produced through a closed loop lyocell process, offer high absorbency, superior softness and rapid fluid management, making them suitable for sensitive skin and premium hygiene applications. The new investment includes process upgrades, advanced filtration systems and enhanced production control to ensure consistent quality across large volume orders.

Analysts estimate that the global nonwoven hygiene market is valued at over US$ 28 billion and is poised for strong growth due to expanding consumer markets in Asia and increasing healthcare consumption. Lenzing’s strengthened capacity is expected to support this demand while offering brands a certified, traceable and low impact fibre solution.

The company stated that the expansion aligns with its climate targets and its ongoing focus on innovation in cellulosic nonwovens for high performance hygiene needs.

Executives at Lenzing noted that demand for specialty cellulosic fibres continues to rise at more than 7% annually as global brands and retailers scale their commitments to single use plastic reduction. VEOCEL fibres, produced through a closed loop lyocell process, offer high absorbency, superior softness and rapid fluid management, making them suitable for sensitive skin and premium hygiene applications.