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06.05.2020

Lenzing’s performance impacted by historically difficult market environment

  • Fiber prices and demand under pressure due to COVID-19 crisis
  • Measures to maintain operations and to protect employees, customers and suppliers implemented successfully
  • Hygiene competence center established to produce personal protective equipment in the fight against COVID-19 pandemic
  • Strategic investment projects in Brazil and Thailand progressing according to plan
  • Management Board proposes not to distribute a dividend for 2019 – AGM rescheduled for June 18, 2020

In a historically difficult market environment with increased pressure on prices and volumes resulting from the COVID-19 crisis, the Lenzing Group held its ground well in the first quarter of 2020. Thanks to a diversified business model and its global footprint on the one hand, and the disciplined implementation of the sCore TEN corporate strategy on the other, the effect on the revenue and earnings development was partially offset.

  • Fiber prices and demand under pressure due to COVID-19 crisis
  • Measures to maintain operations and to protect employees, customers and suppliers implemented successfully
  • Hygiene competence center established to produce personal protective equipment in the fight against COVID-19 pandemic
  • Strategic investment projects in Brazil and Thailand progressing according to plan
  • Management Board proposes not to distribute a dividend for 2019 – AGM rescheduled for June 18, 2020

In a historically difficult market environment with increased pressure on prices and volumes resulting from the COVID-19 crisis, the Lenzing Group held its ground well in the first quarter of 2020. Thanks to a diversified business model and its global footprint on the one hand, and the disciplined implementation of the sCore TEN corporate strategy on the other, the effect on the revenue and earnings development was partially offset.

In the first quarter of 2020, revenue declined by 16.7 percent in comparison with the prior-year quarter and amounted to EUR 466.3 mn. The main reason was the development of prices for standard viscose (due to significant overcapacity in the market) and other standard fibers. The impact of the COVID-19 crisis further increased pressure on prices and volumes. The prices for standard viscose dropped to a new all-time low of 9,150 RMB/ton by March 31 – up to 33 percent lower than in the prior-year quarter. The comparatively positive development of the specialty fiber business and slightly higher demand for fibers in the medical and hygiene segments partially offset the decline in revenue. The share of specialty fibers increased from 47.3 percent in the first quarter of the previous year to 60.9 percent. The earnings development reflects the decline in revenue: EBITDA (earnings before interest, tax, depreciation and amortization) decreased by 24.3 percent to EUR 69.6 mn. The EBITDA margin declined from 16.4 percent to 14.9 percent. Net profit for the period was down 58.6 percent to EUR 17.7 mn. Earnings per share amounted to EUR 0.84 compared with EUR 1.65 in the first quarter of the previous year.

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Lenzing AG
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Lenzing AG

06.05.2020

Lenzing Board proposes waiver of dividend for 2019

The Management Board of the Lenzing Group reassessed its original resolution for a dividend distribution of EUR 1.00 and decided to propose to the Supervisory Board and the Annual General Meeting not to distribute a dividend for the 2019 financial year due to the COVID-19 crisis.

The Management Board of the Lenzing Group reassessed its original resolution for a dividend distribution of EUR 1.00 and decided to propose to the Supervisory Board and the Annual General Meeting not to distribute a dividend for the 2019 financial year due to the COVID-19 crisis.

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Lenzing AG Dividende
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Lenzing AG

24.03.2020

Lenzing suspends 2020 guidance due to COVID-19 crisis

As a result of the global COVID-19 crisis, the Lenzing Group expects based on recent developments a negative impact on its textile sales volume. The potential impact cannot yet be reliably estimated, as it strongly depends on the duration of the crisis as well as its further effects on the global economy and textile markets. Consequently, Lenzing suspends its result forecast for 2020 as disclosed on March 12, 2020, when it expected the result for 2020 to be below the level of 2019. In order to mitigate a potentially stronger than expected decline in earnings, Lenzing has already started to implement cost saving measures across its sites globally.

As a result of the global COVID-19 crisis, the Lenzing Group expects based on recent developments a negative impact on its textile sales volume. The potential impact cannot yet be reliably estimated, as it strongly depends on the duration of the crisis as well as its further effects on the global economy and textile markets. Consequently, Lenzing suspends its result forecast for 2020 as disclosed on March 12, 2020, when it expected the result for 2020 to be below the level of 2019. In order to mitigate a potentially stronger than expected decline in earnings, Lenzing has already started to implement cost saving measures across its sites globally.

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Lenzing AG corona virus
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Lenzing Aktiengesellschaft

Lenzing Logo (c) Lenzing
Lenzing Logo
20.03.2020

Lenzing Group’s Sustainability Report for 2019 published

  • First fiber producer to have an approved science-based target – CO2 neutrality by 2050
  • Breakthrough in REFIBRA™ technology – worn textiles can also be used as fiber raw material
  • Pioneer in the introduction of blockchain technology for fiber recognition
  • On track to meet all sustainability targets

Lenzing – Just ahead of the “Day of Forests ” on March 21, which the FAO (Food and Agricultural Organization of the United Nations) introduced in the 1970s in response to global deforestation, the Lenzing Group presents its Sustainability Report 2019. This sets out how the company is actively dealing with the global challenges.

Lenzing produces fibers from the renewable raw material wood and is well known among its customers and partners in the global textile and nonwoven fabric industry for the clear position it takes as a sustainable producer. It is no accident that the new report is appearing on the International Day of Forests. Lenzing’s sustainable practices in procurement, especially for wood and pulp, were once again ranked as leading in the 2019 reporting year (Hot Button Report).

  • First fiber producer to have an approved science-based target – CO2 neutrality by 2050
  • Breakthrough in REFIBRA™ technology – worn textiles can also be used as fiber raw material
  • Pioneer in the introduction of blockchain technology for fiber recognition
  • On track to meet all sustainability targets

Lenzing – Just ahead of the “Day of Forests ” on March 21, which the FAO (Food and Agricultural Organization of the United Nations) introduced in the 1970s in response to global deforestation, the Lenzing Group presents its Sustainability Report 2019. This sets out how the company is actively dealing with the global challenges.

Lenzing produces fibers from the renewable raw material wood and is well known among its customers and partners in the global textile and nonwoven fabric industry for the clear position it takes as a sustainable producer. It is no accident that the new report is appearing on the International Day of Forests. Lenzing’s sustainable practices in procurement, especially for wood and pulp, were once again ranked as leading in the 2019 reporting year (Hot Button Report).

“Stand up! A gainst business as usual ”

Under the motto “Stand up! Against business as usual ”, Lenzing emphasizes its wider responsibilities over and above its products. Business - as - usual scenarios have to be overcome, in particular for climate protection. With a science-based target, Lenzing is taking action to master the problems caused by climate change. The Lenzing Group is committed to reducing its greenhouse gas emissions per ton of product by 50 percent by 2030 (baseline: 2017). The Science-Based Target s initiative has approved Lenzing’s climate target as science-based.

Breakthrough in REFIBRA™ technology

One of Lenzing’s strategic principles under its “Naturally positive” sustainability strategy and a focus in the 2019 Sustainability Report is the circular economy. To address the enormous textile waste challenges of industry and society, Lenzing has developed a unique recycling technology branded REFIBRA™. This technology enables garment production waste to be reprocessed into fibers. 

 

 

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Lenzing
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Lenzing

(c) Lenzing
13.03.2020

Lenzing solid in a historically difficult market environment

  •  Historically difficult market environment – trade tensions put textile value chain under pressure in 2019
  •  Prices for standard viscose at a historic low
  •  Positive development of the specialty fiber business with a revenue share of already 51 . 6 percent
  •  Strategic investment projects are progressing according to plan
  •  sCore TEN targets for 2024 defined – EBITDA of EUR 800 mn

Lenzing – Despite a generally difficult demand environment for textile fibers and a drastic drop in prices for standard viscose, the Lenzing Group recorded a solid business development in 2019. The disciplined implementation of the sCore TEN corporate strategy and the accompanying focus on specialty fibers once again helped to mitigate the effect of unprecedentedly low standard viscose prices.

  •  Historically difficult market environment – trade tensions put textile value chain under pressure in 2019
  •  Prices for standard viscose at a historic low
  •  Positive development of the specialty fiber business with a revenue share of already 51 . 6 percent
  •  Strategic investment projects are progressing according to plan
  •  sCore TEN targets for 2024 defined – EBITDA of EUR 800 mn

Lenzing – Despite a generally difficult demand environment for textile fibers and a drastic drop in prices for standard viscose, the Lenzing Group recorded a solid business development in 2019. The disciplined implementation of the sCore TEN corporate strategy and the accompanying focus on specialty fibers once again helped to mitigate the effect of unprecedentedly low standard viscose prices.

As a result, revenue dropped by 3.3 percent from EUR 2.18 bn to EUR 2.11 bn in 2019, driven by lower selling prices as well as standard fiber volumes. Due to positive mix effects and more resilient specialty fiber prices, the share of specialty fibers increased from 45.5 percent to 51.6 percent of revenue. The earnings development was largely influenced by the decline in revenue, but also by negative currency effects on material and personnel costs. EBITDA (earnings before interest, tax, depreciation and amortization) fell by 14.4 percent from EUR 382 mn to EUR 326.9 mn. The EBITDA margin declined from 17.6 percent to 15.5 percent. Net profit, at EUR 114.9 mn, was 22.4 percent lower than in the previous year at EUR 148.2 mn. Earnings per share amounted to EUR 4. 63 ( 2018: EUR 5 . 61 ).

 

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Lenzing
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Lenzing

Lenzing in difficult market environment
Logo Lenzing
12.03.2020

Lenzing solid in a historically difficult market environment

 

 

  • Historically difficult market environment – trade tensions put textile value chain under pressure in 2019
  • Prices for standard viscose at a historic low
  • Positive development of the specialty fiber business with a revenue share of already 51.6 percent
  • Strategic investment projects are progressing according to plan
  • sCore TEN targets for 2024 defined – EBITDA of EUR 800 mn

Despite a generally difficult demand environment for textile fibers and a drastic drop in prices for standard viscose, the Lenzing Group recorded a solid business development in 2019. The disciplined implementation of the sCore TEN corporate strategy and the accompanying focus on specialty fibers once again helped to mitigate the effect of unprecedentedly low standard viscose prices.
As a result, revenue dropped by 3.3 percent from EUR 2.18 bn to EUR 2.11 bn in 2019, driven by lower selling prices as well as standard fiber volumes. Due to positive mix effects and more resilient specialty fiber prices, the share of specialty fibers increased from 45.5 percent to 51.6 percent of revenue.
The earnings development was largely influenced by the decline in revenue, but also by negative currency effects on material and personnel costs. EBITDA (earnings before interest, tax, depreciation and amortization) fell by 14.4 percent from EUR 382 mn to EUR 326.9 mn. The EBITDA margin declined from 17.6 percent to 15.5 percent. Net profit, at EUR 114.9 mn, was 22.4 percent lower than in the previous year at EUR 148.2 mn. Earnings per share amounted to EUR 4.63 (2018: EUR 5.61).

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Lenzing financial year 2019
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Corporate Communications, Lenzing AG

Stephan Trubrich neuer Vice President Capital Markets bei Lenzing
Stephan Trubrich neuer Vice President Capital Markets bei Lenzing
10.03.2020

Stephan Trubrich new Vice President Capital Markets at Lenzing

Stephan Trubrich assumed the new role as Vice President Capital Markets, effective as at March 01, 2020. In his capacity, Trubrich will oversee the Lenzing Group’s capital markets activities, including Investor Relations and ESG (Environmental, Social & Governance) Reporting. He will report directly to Stefan Doboczky, Chief Executive Officer of the Lenzing Group.

Stephan Trubrich has more than 9 years of experience in the field of equity research with Kepler Cheuvreux, UniCredit and Deutsche Bank. For many years, he has been Austria’s top ranked equity analyst. Trubrich holds a Master’s Degree in Science in Accounting and Finance from Aston Business School, UK. He is also a CFA Charterholder.

Stephanie Kniep, Head of Investor Relations, will leave Lenzing, effective as of April 30, 2020 to pursue new endeavors.

Stephan Trubrich assumed the new role as Vice President Capital Markets, effective as at March 01, 2020. In his capacity, Trubrich will oversee the Lenzing Group’s capital markets activities, including Investor Relations and ESG (Environmental, Social & Governance) Reporting. He will report directly to Stefan Doboczky, Chief Executive Officer of the Lenzing Group.

Stephan Trubrich has more than 9 years of experience in the field of equity research with Kepler Cheuvreux, UniCredit and Deutsche Bank. For many years, he has been Austria’s top ranked equity analyst. Trubrich holds a Master’s Degree in Science in Accounting and Finance from Aston Business School, UK. He is also a CFA Charterholder.

Stephanie Kniep, Head of Investor Relations, will leave Lenzing, effective as of April 30, 2020 to pursue new endeavors.

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Lenzing
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Lenzing AG

Stephan Sielaff and Christian Skilich appointed to the Management Board of the Lenzing Group
Stephan Sielaff and Christian Skilich appointed to the Management Board of the Lenzing Group
21.02.2020

Stephan Sielaff and Christian Skilich appointed to the Management Board of the Lenzing Group

Lenzing expands its Management Board, naming a new CTO and an additional Management Board member for “Pulp and Wood Raw Materials”

The Supervisory Board of Lenzing AG, the world’s leading producer of botanic cellulose fibers, has appointed two new members to the company’s Management Board. Stephan Sielaff will serve as the new Chief Technology Officer effective March 1, 2020, succeeding Heiko Arnold, who left the Lenzing Group in November 2019. At the same time, Lenzing’s highest management body led by Chairman Stefan Doboczky will be expanded to include a newly created Management Board position for “Pulp and Wood Raw Materials” and will thus consist of five members instead of four. Christian Skilich will assume the position of Member of the Management Board for Pulp and Wood Raw Materials as at June 1, 2020.

“In the coming years our focus will be on achieving the strategic target of strongly increasing our own supply of pulp in line with our corporate strategy sCore TEN. By creating this new division, the composition of the Management Board now also reflects this focus”, says Peter Edelmann, Chairman of the Supervisory Board of Lenzing AG.

Lenzing expands its Management Board, naming a new CTO and an additional Management Board member for “Pulp and Wood Raw Materials”

The Supervisory Board of Lenzing AG, the world’s leading producer of botanic cellulose fibers, has appointed two new members to the company’s Management Board. Stephan Sielaff will serve as the new Chief Technology Officer effective March 1, 2020, succeeding Heiko Arnold, who left the Lenzing Group in November 2019. At the same time, Lenzing’s highest management body led by Chairman Stefan Doboczky will be expanded to include a newly created Management Board position for “Pulp and Wood Raw Materials” and will thus consist of five members instead of four. Christian Skilich will assume the position of Member of the Management Board for Pulp and Wood Raw Materials as at June 1, 2020.

“In the coming years our focus will be on achieving the strategic target of strongly increasing our own supply of pulp in line with our corporate strategy sCore TEN. By creating this new division, the composition of the Management Board now also reflects this focus”, says Peter Edelmann, Chairman of the Supervisory Board of Lenzing AG.

Stephan Sielaff is a chemical engineer who gained experience in the chemical industry in the years 1993 to 2014, holding various management positions for Unilever and Symrise. Since 2014, he has worked for the Swiss specialty chemicals company Archroma, an important supplier of the textile and paper industry, as a Member of the Board of Directors and Chief Operating Officer (COO).He has been responsible for forming the integrated operational structure and the strategic development of the company.

Christian Skilich, who will assume management responsibility for the new Pulp and Wood Raw Materials Division in the Lenzing Group, boasts outstanding expertise in the field of paper and pulp technology. With a Master of Science in Paper Technology and Engineering & Economics, he first held various positions in the paper, packaging and glass industries. Since 2004, he has worked in a broad range of management areas on behalf of the internationally operating Mondi Group. Christian Skilich most recently served as Chief Operating Officer on Mondi’s Board of Directors, overseeing projects in the USA and Europe.

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Lenzing AG
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Lenzing AG

Lenzing ramps up production in China again to full capacity
Lenzing ramps up production in China again to full capacity
21.02.2020

Lenzing ramps up production in China again to full capacity

Supply bottlenecks eliminated. All production lines back to full operation.

Following its temporary cutting back of production at the Nanjing site in China, Lenzing has now once again ramped up operations on all production lines to reach full capacity. Recently supply shortages of important raw materials arose as a result of intense transport controls in connection with the current situation surrounding the coronavirus. For this reason, output from two production lines was scaled back for a short time. All production lines are now fully operational again after the successful resumption of the required supplies to the manufacturing facility.

Supply bottlenecks eliminated. All production lines back to full operation.

Following its temporary cutting back of production at the Nanjing site in China, Lenzing has now once again ramped up operations on all production lines to reach full capacity. Recently supply shortages of important raw materials arose as a result of intense transport controls in connection with the current situation surrounding the coronavirus. For this reason, output from two production lines was scaled back for a short time. All production lines are now fully operational again after the successful resumption of the required supplies to the manufacturing facility.

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Lenzing Group Coronavirus
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Lenzing AG

Lenzig Logo
Lenzig
06.02.2020

Second pilot plant completed for TENCEL™ Luxe filament yarn

The Lenzing Group completed the second pilot production plant announced in May 2018 for its innovative filament yarn TENCEL™ Luxe. Construction of the facility at the Lenzing site involving investments of EUR 30 mn could be concluded on schedule and within budget after 20 months of intensive work. The new pilot production line, which was put into operation in the middle of December 2019, gives Lenzing sufficient capacity for commercial programs and further application development.

The Lenzing Group completed the second pilot production plant announced in May 2018 for its innovative filament yarn TENCEL™ Luxe. Construction of the facility at the Lenzing site involving investments of EUR 30 mn could be concluded on schedule and within budget after 20 months of intensive work. The new pilot production line, which was put into operation in the middle of December 2019, gives Lenzing sufficient capacity for commercial programs and further application development.

Innovation in the eco-couture segment
Thanks to TENCEL™ Luxe, Lenzing is able to embed the issue of sustainability in the premium luxury market in combination with superior aesthetics. The properties of the fine filament yarn can be compared to those of silk due to its airy feeling on the skin and the matte finish. At the same time, TENCEL™ Luxe also stands out because of its extensive strength and high level of environmental compatibility. It is perfectly suited for very fine fabrics and as a blending partner for silk, cashmere and wool. “TENCEL™ Luxe opens up new markets for Lenzing and thus contributes to the successful implementation of their sCore TEN corporate strategy.

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Lenzing Group Tencel
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Lenzing Group

Asia Pacific Rayon  logo Asia Pacific Rayon
Asia Pacific Rayon Logo
24.01.2020

Asia Pacific Rayon Joins World Economic Forum’s Public Blockchain Platform

To Accelerate Public-Private Cooperation in Supply Chain Transparency

Asia Pacific Rayon (APR) has joined the first neutral and public traceability platform capable of visualising blockchain-based supply chain data from multiple companies and sources. It aims to help businesses across industries respond to consumer demands for ethical and environmentally friendly products.
The neutral and safe space for collaboration is provided by the World Economic Forum and created in collaboration with Everledger, Lenzing Group, TextileGenesis™, and the International Trade Centre. APR will contribute to Phase 2 of the initiative which seeks to incorporate more data sources.

“APR has started harnessing the potential of enterprise blockchain technology to enable customers to trace finished products back to the plantation forest origins on a smartphone app. To be able now to connect our data to other similar industry initiatives is a natural next step for APR, as is extending the benefits of our upstream traceability to the rest of the textile value chain.

Enhancing Follow Our Fibre with New Mill Sustainability Dashboard

To Accelerate Public-Private Cooperation in Supply Chain Transparency

Asia Pacific Rayon (APR) has joined the first neutral and public traceability platform capable of visualising blockchain-based supply chain data from multiple companies and sources. It aims to help businesses across industries respond to consumer demands for ethical and environmentally friendly products.
The neutral and safe space for collaboration is provided by the World Economic Forum and created in collaboration with Everledger, Lenzing Group, TextileGenesis™, and the International Trade Centre. APR will contribute to Phase 2 of the initiative which seeks to incorporate more data sources.

“APR has started harnessing the potential of enterprise blockchain technology to enable customers to trace finished products back to the plantation forest origins on a smartphone app. To be able now to connect our data to other similar industry initiatives is a natural next step for APR, as is extending the benefits of our upstream traceability to the rest of the textile value chain.

Enhancing Follow Our Fibre with New Mill Sustainability Dashboard

Launched in mid-2019, APR’s blockchain-based Follow Our Fibre allows customers and stakeholders to scan its viscose product with a user-friendly app to access data that traces the product’s journey from plant nursery to viscose manufacturing and on to seaports. In October 2019, APR announced a collaboration with TrusTrace to integrate Follow Our Fibre with the latter’s T-Trace module. This helps connect APR’s upstream data to downstream textile value chain actors such as yarn and fabric customers and fashion brands.

More recently, a sustainability dashboard tracking key mill environmental performance indicators has been added to Follow Our Fibre. The dashboard presents APR’s performance in its first year of operations where a baseline has been established for quarterly tracking, reporting and continuous improvement.
The performance indicators follow key industry standards being set by ZDHC for Man-Made Cellulosic Fibres (MMCF), as well as the European Union Best Available Technologies (EU BAT).

 

 

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(c) Omnicom Public Relations Group

20.12.2019

Lenzing joint venture to build dissolving wood pulp plant in Brazil

  • Investment of approx. USD 1.3 bn in 500,000 t dissolving wood pulp plant
  • Key milestone to structurally strengthen cost leadership position
  • Significant step towards carbon neutrality

The Lenzing Group and Duratex announced that they will build a 500,000 t dissolving wood pulp plant in the State of Minas Gerais, near Sao Paulo (Brazil). The start-up is planned for the first half of 2022. In the joint venture, Lenzing holds a 51 percent, Duratex a 49 percent stake. The expected industrial CAPEX will be approx. USD 1.3 bn. The project is financed through long-term debt. The corresponding financing contracts are expected to be concluded at the end of the first quarter of 2020.

  • Investment of approx. USD 1.3 bn in 500,000 t dissolving wood pulp plant
  • Key milestone to structurally strengthen cost leadership position
  • Significant step towards carbon neutrality

The Lenzing Group and Duratex announced that they will build a 500,000 t dissolving wood pulp plant in the State of Minas Gerais, near Sao Paulo (Brazil). The start-up is planned for the first half of 2022. In the joint venture, Lenzing holds a 51 percent, Duratex a 49 percent stake. The expected industrial CAPEX will be approx. USD 1.3 bn. The project is financed through long-term debt. The corresponding financing contracts are expected to be concluded at the end of the first quarter of 2020.

Key milestone to structurally strengthen cost leadership position
The new dissolving wood pulp plant strengthens the Lenzing Group’s backward integration and cost position as well as its specialty fiber growth in line with its sCore TEN corporate strategy. The single-line dissolving wood pulp plant with an annual nameplate capacity of 500,000 tons will be the largest and most competitive production facility of its kind. Dissolving wood pulp is a key raw material required for manufacturing Lenzing’s biobased fibers. The joint venture will supply the entire volume of dissolving wood pulp to the Lenzing Group.

“Wood-based cellulosic fibers offer an important contribution to enhance sustainability in the textile industry. In line with its corporate strategy sCore TEN, Lenzing is committed to drive organic growth in this market. With this investment, we will become more competitive, act more independently and subsequently strengthen our market position. The trust and support of the main shareholders of Lenzing and Duratex were of great importance for this key project”, states Stefan Doboczky, CEO of the Lenzing Group.

Strong focus on sustainability
In planning the new production facility, particular importance was given to sustainability aspects. The joint venture secured FSC®-certified plantations1 covering an area of over 44,000 hectares to provide the necessary biomass. These plantations operate completely in accordance with the guidelines and high standards of the Lenzing Group for sourcing wood and pulp. The plant will operate among the highest productive and energy-efficient in the world and will feed the 40 percent of excess bioelectricity generated on site as “green energy” into the public grid. With this project, Lenzing sets a milestone in its strategy to carbon neutrality.

Source:

Lenzing AG

Lenzing AG
Lenzing AG
20.12.2019

Lenzing leads Canopy ranking for sustainable wood procurement

“Hot Button Report”, the Canadian non-profit organization Canopy particularly highlights the innovative strength of the Lenzing Group, its active contribution to forest conservation and high level of transparency.

In the “Hot Button Report” issued by the Canadian non-profit organization Canopy, the Lenzing Group was once again rated number one in the world, thus confirming its role as the sustainability trailblazer in the textile industry. In this widely recognized ranking, Canopy grades the world’s 32 largest producers of wood-based fibers with respect to their success in achieving sustainable wood and pulp sourcing. Wood and the pulp derived from it are the most important raw materials underlying Lenzing’s sustainable production of cellulosic fibers.

“Hot Button Report”, the Canadian non-profit organization Canopy particularly highlights the innovative strength of the Lenzing Group, its active contribution to forest conservation and high level of transparency.

In the “Hot Button Report” issued by the Canadian non-profit organization Canopy, the Lenzing Group was once again rated number one in the world, thus confirming its role as the sustainability trailblazer in the textile industry. In this widely recognized ranking, Canopy grades the world’s 32 largest producers of wood-based fibers with respect to their success in achieving sustainable wood and pulp sourcing. Wood and the pulp derived from it are the most important raw materials underlying Lenzing’s sustainable production of cellulosic fibers.

“We are extremely proud of this top ranking. It underlines our leading position as a sustainability trailblazer in the manufacturing sector and in the fiber industry in particular. It gives our customers the confidence that we have created the right structures to prevent the sourcing and use of wood from ancient and endangered forests”, says Stefan Doboczky, CEO of the Lenzing Group. “Environmental protection and the prudent use of resources are an integral part of our responsibility to nature and society”, he adds.

Lenzing primarily convinced the non-profit organization Canopy this year thanks to its innovative strength used to promote the circular economy in the textile industry, its active contribution towards protecting the forests and preserving biodiversity as well as its high level of transparency in pulp sourcing.

Lenzing received a total of 26.5 points (up 3.5 points from the previous year) and was thus given the “light to mid green shirt” rating. This means that in using the wood-based cellulosic fibers produced by the Lenzing Group, there is only a very minimal danger that wood is derived from primeval forests and endangered forest areas. In the Wood and Pulp Policy published by Lenzing, the company confirms that it only sources wood and pulp from non-controversial sources.

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Lenzing Lenzing Group Canopy
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Lenzing AG

06.11.2019

Lenzing solid in a very difficult market environment

  • Continued positive development of the specialty fiber business with a share in revenue of 49.8 percent
  • Focus on expanding specialty fiber and dissolving wood pulp capacities in line with the sCore TEN strategy
  • Growing trade conflicts put the textile value chain under pressure – standard viscose prices at a historic low
  • Investments of EUR 100 mn to achieve ambitious climate targets

The Lenzing Group continued its solid business development in the third quarter of 2019 despite a significantly more challenging market environment. The consistent implementation of the sCore TEN strategy and the focus on specialty fibers again had a positive impact. As a result, the decline in revenue and earnings in the first three quarters of 2019 due to the historically low standard viscose prices was mitigated.

 

  • Continued positive development of the specialty fiber business with a share in revenue of 49.8 percent
  • Focus on expanding specialty fiber and dissolving wood pulp capacities in line with the sCore TEN strategy
  • Growing trade conflicts put the textile value chain under pressure – standard viscose prices at a historic low
  • Investments of EUR 100 mn to achieve ambitious climate targets

The Lenzing Group continued its solid business development in the third quarter of 2019 despite a significantly more challenging market environment. The consistent implementation of the sCore TEN strategy and the focus on specialty fibers again had a positive impact. As a result, the decline in revenue and earnings in the first three quarters of 2019 due to the historically low standard viscose prices was mitigated.

 

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Lenzing Gruppe Lenzing Group
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Lenzing AG

05.11.2019

Lenzing received several prizes at the Corona awards

Lenzing was awarded for the introduction of the blockchain technology for fiber identification as well as its achievements as a leading company and significant economic engine in the region

On November 4, 2019, Lenzing AG won the “Digital Corona” in Gold. The coveted business prize was awarded for the first time in this category. It is awarded to companies that have dynamically advanced the digitization of business processes, products, services and business models in recent years. At the premiere, Lenzing was delighted to receive the first prize for the introduction of the blockchain technology for fiber identification along the textile value chain.

Lenzing was awarded for the introduction of the blockchain technology for fiber identification as well as its achievements as a leading company and significant economic engine in the region

On November 4, 2019, Lenzing AG won the “Digital Corona” in Gold. The coveted business prize was awarded for the first time in this category. It is awarded to companies that have dynamically advanced the digitization of business processes, products, services and business models in recent years. At the premiere, Lenzing was delighted to receive the first prize for the introduction of the blockchain technology for fiber identification along the textile value chain.

“Consumers increasingly want to understand the ingredients and suppliers of the products they buy, requesting a new level of transparency and traceability. With the introduction of blockchain technology, Lenzing is pursuing the ambitious goal of creating full transparency across the value chain, driving change in an industry where less than five percent of the top 250 apparel brands can track their garments back to the fiber origin”, Stefan Doboczky, CEO of the Lenzing Group, says. Lenzing enables its customers and partners to identify TENCEL ™ branded fibers across each production and distribution step from fiber-to-retail. The technology also allows consumers to verify the garment composition and the underlying textile supply chain at the point of sale, simply by scanning the barcode with a mobile device. As a result, Lenzing also directly supports the business with its very sustainably produced TENCEL™ lyocell fibers.

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Lenzing AG
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Lenzing AG

 Lenzing investiert EUR 40 Mio. in weitere Verbesserung des ökologischen Fußabdrucks am Standort Lenzing (c) Lenzing AG
09.10.2019

Lenzing invests EUR 40 mn to further improve the ecological footprint of the Lenzing site

  • Construction of a new air purification and sulfur recovery plant
  • Further improvement of the exhaust emission values at the Lenzing site
  • Important step in achieving the CO2 targets of the Lenzing Group

Lenzing – The Lenzing Group is a global leader in the climate-friendly and sustainable production of wood-based textile fibers. Lenzing announced its climate targets in August of this year. By 2030, the company aims to reduce its specific CO2 emissions per ton of manufactured pulp and fibers by 50 percent. By the year 2050, the Lenzing Group will no longer generate any net CO2 emissions.

Lenzing‘s Management Board has now resolved to invest EUR 40 mn to expand the production of the raw material sulfuric acid at the Lenzing site. This comprises an important milestone on the path towards climate neutrality. In the future, a new air purification and sulfur recovery plant will not only optimize the company’s self-sufficiency for this raw material and enhance process reliability but improve environmental protection within the context of a clear forward-looking strategy.

  • Construction of a new air purification and sulfur recovery plant
  • Further improvement of the exhaust emission values at the Lenzing site
  • Important step in achieving the CO2 targets of the Lenzing Group

Lenzing – The Lenzing Group is a global leader in the climate-friendly and sustainable production of wood-based textile fibers. Lenzing announced its climate targets in August of this year. By 2030, the company aims to reduce its specific CO2 emissions per ton of manufactured pulp and fibers by 50 percent. By the year 2050, the Lenzing Group will no longer generate any net CO2 emissions.

Lenzing‘s Management Board has now resolved to invest EUR 40 mn to expand the production of the raw material sulfuric acid at the Lenzing site. This comprises an important milestone on the path towards climate neutrality. In the future, a new air purification and sulfur recovery plant will not only optimize the company’s self-sufficiency for this raw material and enhance process reliability but improve environmental protection within the context of a clear forward-looking strategy.

Improved exhaust emission performance

The new plant represents an important contribution towards implementing the sustainability strategy of the Lenzing Group, and also helps to ensure an even higher level of environmental compatibility of all production operations at the Lenzing site. The application of state-of-the-art technologies will further improve exhaust emission values. Furthermore, the new facility will help further reduce the use of fossil fuels by generating steam which will, in turn, be converted into electricity. In this way, it will also support the energy self-sufficiency of the company’s operations in Lenzing.

Improved CO2 scorecard

As a result, the production plant in Lenzing will reduce its annual CO2 emissions by 15,000 tons. This is an important step towards further advancing the company’s ambitious plans in the coming years and also strengthen Lenzing’s leadership role as a driver of ecologically sustainable industry. “On the basis of these investments, Lenzing is taking the next step in achieving its climate targets. At the same time, it will also reach a significantly higher level of autonomy with respect to a vital raw material”, states Stefan Doboczky, Chief Executive Officer of Lenzing.

More information:
Lenzing Group Nachhaltigkeit Fasern
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Lenzing AG

12.09.2019

Lenzing contracts Wood to deliver world´s largest lyocell plant

partner confirms start-up date of the project in Thailand

With the recently announced plans to establish a lyocell production facility in Thailand, the Lenzing Group is taking an important step in meeting the strong demand for lyocell fibers and is further strengthening the company´s position as an industry leader in the specialty cellulosic fibers market. The proposed plant will be the largest lyocell plant in the world, with an annual capacity of 100,000 tons. The total investment volume for the first production line, including infrastructure and site development, amounts to approximately EUR 400 million. Up to four such lines can be potentially integrated and operated on the site. The project is of great importance to Lenzing as it is the first step in bringing lyocell production to Asia, featuring the largest markets, the most important customers and the most extensive growth potential in specialty fiber production.

partner confirms start-up date of the project in Thailand

With the recently announced plans to establish a lyocell production facility in Thailand, the Lenzing Group is taking an important step in meeting the strong demand for lyocell fibers and is further strengthening the company´s position as an industry leader in the specialty cellulosic fibers market. The proposed plant will be the largest lyocell plant in the world, with an annual capacity of 100,000 tons. The total investment volume for the first production line, including infrastructure and site development, amounts to approximately EUR 400 million. Up to four such lines can be potentially integrated and operated on the site. The project is of great importance to Lenzing as it is the first step in bringing lyocell production to Asia, featuring the largest markets, the most important customers and the most extensive growth potential in specialty fiber production.

More information:
Lenzing AG
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Lenzing AG

05.09.2019

Lenzing presented first blockchain pilot project at Hong Kong Fashion Summit

  • Pioneering pilot project conducted with Hong Kong based brand Chicks
  • A large majority of consumers wants brands to disclose their supply chain
  • Transparency ensured from fiber-to-retail

The Lenzing Group has made a huge leap forward in introducing blockchain technology, allowing for a new level of transparency and traceability in the textile industry. After joining the platform of the technology company TextileGenesis™ earlier this year, the world market leader in specialty fibers made from the renewable raw material wood presented the first pilot at this year’s Fashion Summit in Hong Kong on September 05, 2019. This pioneering pilot project was conducted in close cooperation with TextileGenesis™, WWF and Hong Kong based brand Chicks.

 

  • Pioneering pilot project conducted with Hong Kong based brand Chicks
  • A large majority of consumers wants brands to disclose their supply chain
  • Transparency ensured from fiber-to-retail

The Lenzing Group has made a huge leap forward in introducing blockchain technology, allowing for a new level of transparency and traceability in the textile industry. After joining the platform of the technology company TextileGenesis™ earlier this year, the world market leader in specialty fibers made from the renewable raw material wood presented the first pilot at this year’s Fashion Summit in Hong Kong on September 05, 2019. This pioneering pilot project was conducted in close cooperation with TextileGenesis™, WWF and Hong Kong based brand Chicks.

 

Source:

Lenzing AG

LENZING™ fibers are fully biodegradable in water, soil and compost (c) Lenzing
30.08.2019

LENZING™ fibers are fully biodegradable in water, soil and compost

  • Organic Waste Systems and TÜV confirm fiber biodegradability also in fresh water
  • All white LENZING™ Viscose, Modal and Lyocell fibers are now certified for all environments
  • Global legislators aim at limiting plastic waste persisting in the environment for centuries
  • EU Single-Use Plastics Directive partly regulates usage of plastic products
  • Biodegradable materials such as wood-based fibers are the best alternative to single-use plastics

The Lenzing Group received confirmation of the full biodegradability of its fibers in fresh water by the independent research laboratory Organic Waste Systems (OWS). The new and existing international certifications conducted by OWS and issued by TÜV Austria verify that LENZING™ Viscose fibers, LENZING™ Modal fibers and LENZING™ Lyocell fibers are biodegradable in all natural and industrial environments: in the soil, compost as well as in fresh and in marine water.

  • Organic Waste Systems and TÜV confirm fiber biodegradability also in fresh water
  • All white LENZING™ Viscose, Modal and Lyocell fibers are now certified for all environments
  • Global legislators aim at limiting plastic waste persisting in the environment for centuries
  • EU Single-Use Plastics Directive partly regulates usage of plastic products
  • Biodegradable materials such as wood-based fibers are the best alternative to single-use plastics

The Lenzing Group received confirmation of the full biodegradability of its fibers in fresh water by the independent research laboratory Organic Waste Systems (OWS). The new and existing international certifications conducted by OWS and issued by TÜV Austria verify that LENZING™ Viscose fibers, LENZING™ Modal fibers and LENZING™ Lyocell fibers are biodegradable in all natural and industrial environments: in the soil, compost as well as in fresh and in marine water.

The biodegradability of cellulosic products and the synthetic fiber polyester was tested in fresh water at OWS according to valid international standards, e.g. ISO 14851. At the end of the trial period, LENZING™ wood-based cellulosic fibers, cotton and paper pulp were shown to be fully biodegradable in fresh water in contrast to synthetic polyester fibers. The fact that synthetic materials are not biodegradable leads to major problems in wastewater treatment plants and potentially marine litter. In turn, this not only harms fish and birds living in and close to the oceans but also all marine organisms and us humans.

“The Lenzing Group operates a truly circular business model based on the renewable raw material wood to produce biodegradable fibers returning to nature after use. This complete cycle comprises the starting point of the core value of sustainability embedded in our company strategy sCore TEN and is the ‘raison d’etre’ of our company”, says Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “In living up to this positioning, we not only enhance the business of our suppliers, customers and partners along the value chain but also improve the state of the entire textile and nonwovens industries.”

Both the textile and nonwovens industries face huge challenges with respect to littering. If current trends continue, the oceans could contain more plastic than fish by 2050. Therefore, legislative bodies worldwide can no longer ignore the issue and have moved towards plastics legislation aimed at limiting the vast amount of waste. In response, European lawmakers issued the Single-Use Plastics Directive currently being transposed into national legislation in the EU member states.

Conventional wet wipes and hygiene products mostly contain plastic and were thus identified as one of the product categories to be singled out. Less polluting alternatives are generally encouraged by NGOs and legislators, e.g. products made of biodegradable wood-based cellulosic fibers. Plastic waste including microplastic can persist in the environment for centuries. In contrast, biodegradable materials are the best alternative to single-use plastics because they fully convert back to nature by definition and thus do not require recycling.

Source:

Corporate Communications & Investor Relations
Lenzing Aktiengesellschaft

08.08.2019

Lenzing solid in a significantly more challenging market environment

  • Continued positive development of specialties business with revenue share of already more than 48 percent
  • Commitment to long-term growth plan – investment in new 100,000 tons plant in Thailand approved
  • Significantly more challenging market environment for standard viscose with historically low prices
  • Outlook for 2019 confirmed

The Lenzing Group continued its solid business development in the first half of 2019. Despite a significantly more challenging market environment with historically low prices for standard viscose, Lenzing recorded a slight increase in revenue. The disciplined implementation of the sCore TEN strategy and the focus on specialty fibers continue to have a positive impact. Thanks to ongoing high demand for sustainably produced specialty fibers and positive currency effects, the impact of low standard viscose prices was largely offset in earnings.

  • Continued positive development of specialties business with revenue share of already more than 48 percent
  • Commitment to long-term growth plan – investment in new 100,000 tons plant in Thailand approved
  • Significantly more challenging market environment for standard viscose with historically low prices
  • Outlook for 2019 confirmed

The Lenzing Group continued its solid business development in the first half of 2019. Despite a significantly more challenging market environment with historically low prices for standard viscose, Lenzing recorded a slight increase in revenue. The disciplined implementation of the sCore TEN strategy and the focus on specialty fibers continue to have a positive impact. Thanks to ongoing high demand for sustainably produced specialty fibers and positive currency effects, the impact of low standard viscose prices was largely offset in earnings.

More information:
Lenzing Group
Source:

Lenzing AG