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Corporate Update

Nonwoven-Grade VEOCEL™ Lyocell Production Expands To Asia

• By  Textile Excellence
• April 01, 2026

VEOCEL™, Lenzing's flagship specialty nonwovens brand, expands production at its Thai plant in Prachinburi. This is the first-ever production of its nonwoven-grade lyocell fibres in Asia. Built in 2022 with a 100,000-ton annual production capacity, the facility - previously focused on fibres for textile applications - now can directly meet the demand for VEOCEL™’s biodegradable, wood-based lyocell fibres for nonwovens products. These fibres are an essential ingredient for high-quality nonwovens products, ranging from baby wipes to facial sheet masks and everyday personal hygiene items.

With production in Thailand, manufacturers and brand partners can now count on greater supply chain stability with significantly shorter lead times.

Localised production also means fewer miles travelled. Sourcing these fibres directly within Asia, rather than from Lenzing’s other lyocell facility in Austria, reduces the need for intercontinental imports. This significantly contributes to reducing transport-related emissions, supporting the environmental commitments of both Lenzing and its partners in Asia.

“This expansion is a landmark achievement for the VEOCEL™ brand and the broader nonwovens industry in Asia,” said Patricia A. Sargeant, Executive Vice President Nonwovens at Lenzing AG speaking at the launch ceremony on 18th March in Prachinburi. “We are now ideally positioned to serve our valued customers with enhanced speed, stability, and sustainability. With this move, we aim to empower our partners in Asia to meet the consumer demand for environmentally responsible wipes and hygiene products, while significantly reducing the carbon footprint associated with global logistics.”

Building on a sustainable foundation

The Prachinburi plant utilises a resource-efficient, closed-loop production process that results in low air and water emissions. The facility also drives Lenzing’s broader climate goals, targeting 95% biomass energy by 2027 and Scope 1 and 2 carbon neutrality by 2030.

“Our site in Thailand was built with future growth and our ambitious climate goals in mind,” added Krishna Manda, Global Head of Sustainability for Lenzing Group. “Expanding the facility’s capabilities for VEOCEL™ fibres is a testament to our ongoing investments in sustainable innovation. Once fully commercialized, this capability will play a vital role in transitioning the regional nonwovens industry from fossil-based synthetics to biodegradable, cellulosic alternatives.”

“Our site in Thailand was built with future growth and our ambitious climate goals in mind,” added Krishna Manda, Global Head of Sustainability for Lenzing Group. “Expanding the facility’s capabilities for VEOCEL™ fibres is a testament to our ongoing investments in sustainable innovation. Once fully commercialized, this capability will play a vital role in transitioning the regional nonwovens industry from fossil-based synthetics to biodegradable, cellulosic alternatives.”