From the Sector

Reset
142 results
09.05.2025

Lenzing with significant revenue and earnings growth in 1st quarter 2025

The Lenzing Group, a leading supplier of regenerated cellulosic fibers for the textile and nonwovens industries, reports a continued improvement in its business performance in the first quarter of 2025, although the recovery of global textile markets remained very slow and uneven during the reporting period. While the positive trend in volumes sold continued, prices remained constant at a low level. Raw material, energy and logistics costs continued to be high.

The Lenzing Group, a leading supplier of regenerated cellulosic fibers for the textile and nonwovens industries, reports a continued improvement in its business performance in the first quarter of 2025, although the recovery of global textile markets remained very slow and uneven during the reporting period. While the positive trend in volumes sold continued, prices remained constant at a low level. Raw material, energy and logistics costs continued to be high.

Revenue grew by 4.8 percent year-on-year to EUR 690.2 mn in the first quarter of 2025. The operating earnings trend largely reflected the positive effects of the performance program. Earnings before interest, tax, depreciation and amortization (EBITDA) rose by 118.8 percent year-on-year to EUR 156.1 mn. This also includes positive special effects from the sale of EUR 25.5 mn surplus EU emission certificates and the change in the fair value of biological assets in the amount of EUR 9.2 mn. The EBITDA margin in-creased from 10.8 percent to 22.6 percent. The operating result (EBIT) amounted to EUR 74.3 mn (compared with EUR 1.5 mn in the first quarter of 2024) and the EBIT margin amounted to 10.8 percent (compared with 0.2 percent in the first quarter of 2024). Earnings before tax (EBT) amounted to EUR 35.1 mn (compared with minus EUR 17.8 mn in the first quarter of 2024). The result after tax also improved significantly and was positive again for the first time since the third quarter of 2022 at EUR 31.7 mn (compared with minus EUR 26.9 mn in the first quarter of 2024).

The Lenzing Group’s performance program is designed holistically with the overarching objective of significantly increasing long-term resilience to crises and greater agility in the face of market changes. The program initiatives are primarily aimed at improving EBITDA and at generating free cash flow through enhanced profitability, as well as sustainable cost excellence. Extensive actions are being undertaken to strengthen sales activities, such as the acquisition of new customers for the most important fiber types as well as expansion in previously smaller markets, which are exerting a positive impact in terms of revenue. The Managing Board also anticipates significant cost savings. Savings of over EUR 130 mn were already realized in the 2024 financial year. From the current financial year onwards, Lenzing is aiming for recurring annual cost savings of over EUR 180 mn.

Outlook
The IMF has significantly downgraded its growth forecasts for both this year and next to 2.8 percent and 3.0 percent respectively. The escalation of international trade conflicts and the risk of inflation returning are seen as major threats to global growth.

In times of uncertainty and high living costs, consumers can be expected to remain cautious and thrifty, with negative effects on consumer sentiment and their willingness to spend.

The currency environment is expected to remain volatile in regions relevant to Lenzing.

In the trend-setting market for cotton, analysts expect a slight increase in stocks to around 18.8 mn tonnes in the current 2024/2025 harvest season, according to preliminary estimates.

Lenzing will continue to consistently implement its performance program and expects to leverage further cost potentials and further improve its revenue and margin generation.

Having weighed the aforementioned factors, the Lenzing Group confirms its guidance for the 2025 financial year of year-on-year higher EBITDA.

However, the current tariff dispute and the high level of uncertainty associated with it are dampening expectations and further limiting the visibility of earnings.

In structural terms, Lenzing continues to expect growth in demand for environmentally responsible fibers for the textile and apparel industry, as well as for the hygiene and medical sectors. As a consequence, Lenzing is very well positioned with its strategy and is driving ahead with not only profitable growth in specialty fibers but also the further expansion of its market leadership in the sustainability area.

Source:

Lenzing AG

storage tank for acetic acid Photo Lenzing AG
15.04.2025

Lenzing und Speyer & Grund: New storage tank for Acetic Acid

The Lenzing Group, a leading provider of regenerated cellulose fibers for the textile and nonwoven industries, and Speyer & Grund, specialists in vinegar essences and acidulants as well as long-term partners for LENZING™ Acetic Acid Biobased, announce the completion of a new acetic acid storage tank.

The new storage tank, built at Speyer & Grund’s site in Meerane (Germany), contains a tank for the exclusive filling with LENZING™ Acetic Acid Biobased. This is produced as a by-product in pulp production. The now increased tank capacity also enhances flexibility in the supply chain.

lisabeth Stanger, Senior Director Biorefinery & Co-Products: “Lenzing is a European model company of the bioeconomy with its biorefinery products and the most efficient use of the resource wood. We are pleased with the long-standing, trusting partnership with Speyer & Grund, which represents an important step towards an even more sustainable supply chain.”

The Lenzing Group, a leading provider of regenerated cellulose fibers for the textile and nonwoven industries, and Speyer & Grund, specialists in vinegar essences and acidulants as well as long-term partners for LENZING™ Acetic Acid Biobased, announce the completion of a new acetic acid storage tank.

The new storage tank, built at Speyer & Grund’s site in Meerane (Germany), contains a tank for the exclusive filling with LENZING™ Acetic Acid Biobased. This is produced as a by-product in pulp production. The now increased tank capacity also enhances flexibility in the supply chain.

lisabeth Stanger, Senior Director Biorefinery & Co-Products: “Lenzing is a European model company of the bioeconomy with its biorefinery products and the most efficient use of the resource wood. We are pleased with the long-standing, trusting partnership with Speyer & Grund, which represents an important step towards an even more sustainable supply chain.”

“LENZING™ Acetic Acid Biobased has been an integral part of our Surig vinegar essence since 1983. The new tank solution means growth for us with maximum supply security. At the same time, we increase flexibility for delivery logistics as an important component for close cooperation with a strong partner,” explains Axel Rosener, Managing Director of Speyer & Grund GmbH.

The biorefinery process in Lenzing optimally utilizes the renewable raw material wood, the starting material for pulp and fiber production, and converts it into valuable products such as biobased acetic acid. LENZING™Acetic Acid Biobased, which has a carbon footprint over 85 percent lower than fossil-based acetic acid, is used in the food, pharmaceutical, cosmetic, cleaning, chemical, and textile industries and in textile sector processes such as washing, dyeing, and finishing.

More information:
Lenzing AG tank storage acetic acid
Source:

Lenzing AG

02.04.2025

Board member Walter Bickel leaves Lenzing

The Lenzing Group, a leading provider of regenerated cellulose fibers for the textile and nonwoven industries, announces personnel changes in the company’s Managing Board. The Supervisory Board of Lenzing AG and Dr. Walter Bickel, Chief Transformation Officer of Lenzing AG, have mutually agreed to end the temporary mandate of Mr. Bickel and that Mr. Bickel will step down from his operational activities at the end of March 2025.

Mr. Bickel was appointed to the Managing Board of Lenzing AG as of April 15, 2024 to strengthen the Lenzing Managing Board and to be responsible for the further development and implementation of the performance program. Under his leadership, a significant overachievement of the planned contributions from the performance program could be realized. The basis for future significant improvement steps is established, and the program has been structured in a way that it can now be continued by Lenzing AG seamlessly.

The Lenzing Group, a leading provider of regenerated cellulose fibers for the textile and nonwoven industries, announces personnel changes in the company’s Managing Board. The Supervisory Board of Lenzing AG and Dr. Walter Bickel, Chief Transformation Officer of Lenzing AG, have mutually agreed to end the temporary mandate of Mr. Bickel and that Mr. Bickel will step down from his operational activities at the end of March 2025.

Mr. Bickel was appointed to the Managing Board of Lenzing AG as of April 15, 2024 to strengthen the Lenzing Managing Board and to be responsible for the further development and implementation of the performance program. Under his leadership, a significant overachievement of the planned contributions from the performance program could be realized. The basis for future significant improvement steps is established, and the program has been structured in a way that it can now be continued by Lenzing AG seamlessly.

The Lenzing Group’s holistic performance program pursues the overarching goal of significantly increasing long-term resilience to crises and greater agility in order to respond to market changes. The program initiatives are primarily aimed at improving EBITDA and generating free cash flow through increased profitability and sustainable cost excellence. Numerous activities are being undertaken to strengthen sales, such as acquiring new customers for the most important fiber types and expanding into new markets, which are already having a positive impact on sales. In addition, the Managing Board expects significant cost savings, of which more than EUR 130 m could already be realized in 2024.

In addition to the positive effects in the 2024 financial year on revenue development (+5.7 % increase in revenue compared to 2023) and earnings development (+30.4 % increase in EBITDA compared to 2023), the performance program also improved free cash flow to EUR 167.0 mn (compared to minus EUR 122.8 mn in 2023). Lenzing AG will continue to consistently implement the ongoing performance program with the aim of achieving annualized cost savings of over EUR 180 mn from the 2025 financial year onwards.

Source:

Lenzing AG

Lenzing AG at the Hannover Messe 2025 (c) Alexandre Collon / Lenzing AG
31.03.2025

Lenzing AG at Hannover Messe 2025

The Lenzing Group, a leading supplier of regenerated cellulose fibers for the textile and nonwovens industries, will be presenting its sustainable innovations at Hannover Messe 2025, the world’s leading trade fair for the industry, from March 31 to April 4. As a co-exhibitor at the EU Commission’s stand, the leading integrated fiber group is representing a European flagship company in the clean industry.

Lenzing is currently the only producer of regenerated cellulosic fibers with a verified, science-based net-zero target. Lenzing is also proactively developing and promoting innovation to provide economically viable and scalable solutions to the global textile waste problem and accelerate the transition to a circular economy model.

A current example of Lenzing’s pioneering work in this field is the CELLFIL project, which was launched in 2024 and is co-funded by the EU with EUR 6.9 mn. As part of this project, Lenzing is working with the non-profit organization RTDS Group and 13 other partners from research and industry to promote the scaling of lyocell filaments.

The Lenzing Group, a leading supplier of regenerated cellulose fibers for the textile and nonwovens industries, will be presenting its sustainable innovations at Hannover Messe 2025, the world’s leading trade fair for the industry, from March 31 to April 4. As a co-exhibitor at the EU Commission’s stand, the leading integrated fiber group is representing a European flagship company in the clean industry.

Lenzing is currently the only producer of regenerated cellulosic fibers with a verified, science-based net-zero target. Lenzing is also proactively developing and promoting innovation to provide economically viable and scalable solutions to the global textile waste problem and accelerate the transition to a circular economy model.

A current example of Lenzing’s pioneering work in this field is the CELLFIL project, which was launched in 2024 and is co-funded by the EU with EUR 6.9 mn. As part of this project, Lenzing is working with the non-profit organization RTDS Group and 13 other partners from research and industry to promote the scaling of lyocell filaments.

Since 2021, Lenzing has been working with Swedish pulp producer Södra to jointly develop new processes for recycling used textiles on an industrial scale. The project was supported in 2023 as part of the LIFE 2022 program with a grant of EUR 10 mn from the EU.

Another example of Lenzing’s innovative strength is the project “Glacial Threads: From Forests to Future Textiles”, which combines glacier protection and textile recycling and will be presented at HANNOVER MESSE 2025.

Source:

Lenzing AG

Graphic: Lenzing AG
20.03.2025

Lenzing presents Young Scientist Award to young talents

The Lenzing Group is presenting the Lenzing Young Scientist Award at the Dornbirn Global Fiber Congress (GFC) from September 10 to 12, 2025 for bachelor, master and doctoral students who develop innovative solutions to ecological challenges in the fiber and textile industry. The deadline for applications is June 30, 2025. The best thesis by Bachelor's and Master's students will receive a prize of EUR 3,000, while the best doctoral thesis will receive EUR 5,000.

The Lenzing Group is presenting the Lenzing Young Scientist Award at the Dornbirn Global Fiber Congress (GFC) from September 10 to 12, 2025 for bachelor, master and doctoral students who develop innovative solutions to ecological challenges in the fiber and textile industry. The deadline for applications is June 30, 2025. The best thesis by Bachelor's and Master's students will receive a prize of EUR 3,000, while the best doctoral thesis will receive EUR 5,000.

For the fourth time, the Lenzing Group honors young researchers with the Lenzing Young Scientist Award for excellent research work in the fiber and textile sector. The Dornbirn-GFC, as a platform for international exchange of experience in the field of fibers, offers an ideal stage for this research competition. Bachelor's and Master's students can submit their scientific work under the guiding theme “Unlimited inspiration from nature: Together we research sustainable innovations based on cellulose, including regenerated cellulose fibers and films, as well as cellulose composites” and face a jury of renowned experts from the industry. The aim is to support students who inspire the industry with their research results and create a platform for networking with the textile and fiber industry.

Austrian Fibers Institute as organizer of the Dornbirn GFC
For the 64th time, the Austrian Fiber Institute is organizing the Dornbirn Fiber Congress on a non-profit basis and will provide the framework for presenting the Lenzing Young Scientist Award from September 10 to 12, 2025. The Austrian Fiber Institute, based in Vienna, was founded in 1960 by fiber producers and the Austrian textile industry to promote the market launch of fibers and their products. The Fiber Institute also offers the opportunity to exchange information and experience about fibers and supports contact with educational institutions. The GFC focuses on an international exchange of experience in close coordination with the umbrella organization CIRFS in Brussels and deals with topics relevant to the future, such as fiber innovations, sustainability and the circular economy.

Applicants for the Lenzing Young Scientist Award have the opportunity to submit their work (theses, papers, etc.) in English until June 30, 2025 to the following e-mail address: YSA2025@lenzing.com. Further information can be found online at https://www.lenzing.com/young-scientist-award.

Source:

Lenzing AG

14.03.2025

Lenzing Group continued recovery course in 2024

The Lenzing Group, a provider of regenerated cellulose fibers for the textile and nonwoven industries, continued to improve its business performance in 2024 despite the expected slow market recovery. While Lenzing was able to significantly increase its sales volumes, the price level remained below that of the previous year. Logistics costs have risen significantly, and raw material and energy costs also remained high.

Revenue grew by 5.7 percent year-on-year to EUR 2.66 bn in 2024, mainly reflecting a higher level of revenue generated from fibers (+10 percent). The positive effects of the holistic performance program were the main factor driving the operating earnings trend. Earnings before interest, tax, depreciation and amortization (EBITDA) rose by 30.4 percent year-on-year to EUR 395.4 mn in 2024. The EBITDA margin increased from 12.0 percent to 14.8 percent. The operating result (EBIT) amounted to EUR 88.5 mn (compared with minus EUR 476.4 mn in 2023) and the EBIT margin stood at 3.3 percent (compared with minus 18.9 percent in 2023). The result before tax (EBT) amounted to minus EUR 42.0 mn (compared with minus EUR 585.6 mn in 2023).

The Lenzing Group, a provider of regenerated cellulose fibers for the textile and nonwoven industries, continued to improve its business performance in 2024 despite the expected slow market recovery. While Lenzing was able to significantly increase its sales volumes, the price level remained below that of the previous year. Logistics costs have risen significantly, and raw material and energy costs also remained high.

Revenue grew by 5.7 percent year-on-year to EUR 2.66 bn in 2024, mainly reflecting a higher level of revenue generated from fibers (+10 percent). The positive effects of the holistic performance program were the main factor driving the operating earnings trend. Earnings before interest, tax, depreciation and amortization (EBITDA) rose by 30.4 percent year-on-year to EUR 395.4 mn in 2024. The EBITDA margin increased from 12.0 percent to 14.8 percent. The operating result (EBIT) amounted to EUR 88.5 mn (compared with minus EUR 476.4 mn in 2023) and the EBIT margin stood at 3.3 percent (compared with minus 18.9 percent in 2023). The result before tax (EBT) amounted to minus EUR 42.0 mn (compared with minus EUR 585.6 mn in 2023).

Outlook
The IMF recently slightly upgraded its growth forecast for 2025 to 3.3 percent, but emphasizes the continued high extent of variation between regions as well as the high level of uncertainty. The latter is mainly due to geopolitical tensions, increasing protectionist tendencies, and a potential return of inflation.

In times of uncertainty, consumers are remaining cautious and thrifty, which is exerting a negative impact on consumer sentiment and on their propensity to spend.

The currency environment is expected to remain volatile in the regions relevant to Lenzing.

In the trend-setting market for cotton, analysts anticipate a slight increase of stock levels to around 18.7 mn tonnes in the current 2024/2025 harvest season, following a reduction of 0.9 mn tonnes in the previous season, according to preliminary estimates.
Earnings visibility remains limited overall.

Lenzing is still ahead of schedule with the implementation of the performance program. The company expects that the measures will also contribute to further earnings improvement in the coming quarters.

Taking the aforementioned factors into consideration, the Lenzing Group expects EBITDA to be higher in 2025 than in the previous year.
In structural terms, Lenzing continues to expect growth in demand for environmentally responsible fibers for the textile and apparel industry, as well as for the hygiene and medical sectors. As a consequence, Lenzing is very well positioned with its strategy and is driving ahead with not only profitable growth in specialty fibers but also the further expansion of its market leadership in the sustainability area.

More information:
Lenzing AG financial year 2024
Source:

Lenzing AG

(c) Antwerp Declaration / Cefic
27.02.2025

Lenzing AG welcomes Clean Industrial Deal

The Lenzing Group, a leading supplier of regenerated cellulose fibers for the textile and nonwovens industries, welcomes the European Commission’s Clean Industrial Deal, which aims to pave the way for a sustainable, climate-neutral and competitive industry. Commission President Ursula von der Leyen discussed the initiative on Wednesday, February 26, 2025, together with 400 business leaders, including the CEO of the Lenzing Group, Rohit Aggarwal, in Antwerp (Belgium). The industry is calling on EU heads of state and government to take urgent measures in all EU member states without delay ahead of the upcoming European Council meeting in March.

The Lenzing Group, a leading supplier of regenerated cellulose fibers for the textile and nonwovens industries, welcomes the European Commission’s Clean Industrial Deal, which aims to pave the way for a sustainable, climate-neutral and competitive industry. Commission President Ursula von der Leyen discussed the initiative on Wednesday, February 26, 2025, together with 400 business leaders, including the CEO of the Lenzing Group, Rohit Aggarwal, in Antwerp (Belgium). The industry is calling on EU heads of state and government to take urgent measures in all EU member states without delay ahead of the upcoming European Council meeting in March.

“International trade tensions, volatile energy markets, and the need to decarbonise industries demand urgent collective action. We must continue to support Europe’s green leadership and ensure that those investing in sustainability are incentivised. We must act now, work together and translate ambition into tangible results”, emphasizes Rohit Aggarwal, CEO of Lenzing Group. “The Clean Industrial Deal is an important initiative for Europe’s industrial and sustainable future. It will strengthen Europe’s net-zero industry, expand green technology manufacturing, and enhance industrial competitiveness.”

One important aspect is access to affordable and clean energy, which is crucial for the global position and competitiveness of the industry.

“We appreciate the Commission President taking the time to join us today in Antwerp to present the Clean Industrial Deal. Nine out of ten calls of the Antwerp Declaration have been addressed. We need to transform Europe’s ambition ‘to be’, into a determination ‘to do’. Every day, Europe is falling behind its goals, and is losing quality jobs for our current and future generations of workers. In the turbulent times we are in we need bold action from the European Leadership,” said Ilham Kadri, President of the European Chemical Industry Council, Cefic.

Europe’s industries are facing historical challenges: declining demand, stalled investments, reduced capacity, and EU gas prices at 4 to 5 times higher than its competitors. Between 2023 and 2024, Europe’s manufacturing output – a sector employing over 31 million people – dropped another 2.6 percent. While for the chemicals industry – the industry of industries – Cefic’s recent study emphasised the severity, with over 11 million tons of capacity announced to be closed between 2023 and 2024, affecting 21 major sites.

To overcome these challenges, back in February 2024, 73 business leaders presented the Antwerp Declaration to Commission President, Ursula von der Leyen and former Belgian Prime Minister Alexander De Croo. The Antwerp Declaration lays out 10 concrete actions to restore the business case for investments, to implement Europe’s sustainability ambitions and safeguard quality jobs in Europe. It is now signed by over 1,300 signatories.

“Reading the Clean Industrial Deal, we need the Commission to focus, prioritise the three key actions that improve our situation already this year and put all power, boldness and bravery in the European Commission behind these. And give us a realistic planning for the remaining actions. When we say actions, we mean action, not strategies, policies or plans. Leave no stone unturned and break all taboos. We need the situation to change.” Marco Mensink, Cefic Director General.

“Cefic calls on all new EU initiatives to be evaluated against the following criteria: Do they keep Europe safe and independent, reduce energy prices, ease the administrative burden on companies, attract investments to Europe, create markets for sustainable products, and safeguard quality jobs in Europe? If the answer to any of these questions is no, EU policymakers should reconsider and revise the proposal accordingly.”

acetic acid (c) Lenzing AG / Christian Leopold
10.12.2024

C.P.L. first license partner for Lenzing™ Acetic Acid Biobased

The Lenzing Group, a leading supplier of regenerated cellulose fibers for the textile and nonwovens industries, announces a significant milestone in its partnership with C.P.L. Prodotti Chimici srl, a renowned supplier of chemical products for the textile industry. LENZING™ Acetic Acid Biobased, a by-product of pulp production, is at the center of this collaboration. Oniverse, which also owns the renowned fashion brand Calzedonia, will use LENZING™ Acetic Acid Biobased for dyeing textiles in the future.

Lenzing has always developed solutions together with partners to meet the industry's requirements for a circular economy. The strategic partnerships with C.P.L., the first licensing partner for LENZING™ Acetic Acid Biobased, and Oniverse underline the trust of customers in Lenzing's biorefinery products. In addition, Lenzing enables improved visibility of its own products for partners and customers through co-branding, whether in the textile and nonwovens sector or in the biorefinery product portfolio.

The Lenzing Group, a leading supplier of regenerated cellulose fibers for the textile and nonwovens industries, announces a significant milestone in its partnership with C.P.L. Prodotti Chimici srl, a renowned supplier of chemical products for the textile industry. LENZING™ Acetic Acid Biobased, a by-product of pulp production, is at the center of this collaboration. Oniverse, which also owns the renowned fashion brand Calzedonia, will use LENZING™ Acetic Acid Biobased for dyeing textiles in the future.

Lenzing has always developed solutions together with partners to meet the industry's requirements for a circular economy. The strategic partnerships with C.P.L., the first licensing partner for LENZING™ Acetic Acid Biobased, and Oniverse underline the trust of customers in Lenzing's biorefinery products. In addition, Lenzing enables improved visibility of its own products for partners and customers through co-branding, whether in the textile and nonwovens sector or in the biorefinery product portfolio.

The biorefinery process at Lenzing makes optimal use of the renewable raw material wood, the starting material for pulp and fiber production, and converts it into valuable products such as bio-based acetic acid. LENZING™ Acetic Acid Biobased, which has a carbon footprint that is more than 85 percent lower than fossil-based acetic acid, is used in the food, pharmaceutical, cosmetics, chemical and textile industries and in processes in the textile sector, such as washing, dyeing and finishing.

Source:

Lenzing AG

09.10.2024

Lenzing acquires stake in TreeToTextile

The Lenzing Group, a supplier of regenerated cellulose fibers for the textile and nonwovens industries, acquired of a minority share in TreeToTextile AB, joining the existing shareholders H&M Group, Inter IKEA Group, Stora Enso, and LSCS Invest. The group of owners is united by the strong belief that sustainably produced fibers will have the power to change the textile industry to the better.

TreeToTextile was established as a joint venture in 2014 with the objective of developing a more sustainable process for cellulosic fiber production. The company has operated pilot lines since 2015 and invested in a demonstration plant in 2021. The next step in the company's evolution will be to scale up the production and make its fibers available on the market.

Lenzing Group has produced sustainable regenerated cellulosic fibers and dissolving wood pulp for over 85 years. “We are excited about TreeToTextile’s award-winning technology and production process, which further reduces environmental impact, promotes the transition to a more sustainable future and is fully in line with our corporate strategy,” says Rohit Aggarwal, CEO of the Lenzing Group.

The Lenzing Group, a supplier of regenerated cellulose fibers for the textile and nonwovens industries, acquired of a minority share in TreeToTextile AB, joining the existing shareholders H&M Group, Inter IKEA Group, Stora Enso, and LSCS Invest. The group of owners is united by the strong belief that sustainably produced fibers will have the power to change the textile industry to the better.

TreeToTextile was established as a joint venture in 2014 with the objective of developing a more sustainable process for cellulosic fiber production. The company has operated pilot lines since 2015 and invested in a demonstration plant in 2021. The next step in the company's evolution will be to scale up the production and make its fibers available on the market.

Lenzing Group has produced sustainable regenerated cellulosic fibers and dissolving wood pulp for over 85 years. “We are excited about TreeToTextile’s award-winning technology and production process, which further reduces environmental impact, promotes the transition to a more sustainable future and is fully in line with our corporate strategy,” says Rohit Aggarwal, CEO of the Lenzing Group.

Dr. Roxana Barbieru, CEO of TreeToTextile, adds: “Now with the additional expertise and sustainability leadership of our new shareholder Lenzing Group, our speed to market will increase significantly, to reach our ambitious goals and become an important player in the textile industry.”

Source:

Lenzing AG

14.08.2024

Lenzing: Platinum status in EcoVadis CSR rating

The Lenzing Group has been awarded platinum status in the EcoVadis CSR rating. The rating comprehensively covers the four most important practices in the area of corporate social responsibility: environment, fair working conditions and human rights, ethics, and sustainable procurement.

For the fourth time in a row, Lenzing has been awarded platinum status by EcoVadis. This puts Lenzing in the top one percent of companies rated by EcoVadis worldwide. Lenzing achieved the greatest progress this year in the categories of sustainable procurement and ethics. Lenzing also outperformed the previous year in the areas of labor and human rights as well as certifications. Since its foundation in 2007, EcoVadis has developed into on of the largest and most trusted providers of sustainability ratings for companies and has created a global network of more than 130,000 rated companies worldwide. The methodological framework evaluates companies' policies, measures and activities, as well as their published reports on the environment, labor and human rights, ethics, and sustainable procurement.

The Lenzing Group has been awarded platinum status in the EcoVadis CSR rating. The rating comprehensively covers the four most important practices in the area of corporate social responsibility: environment, fair working conditions and human rights, ethics, and sustainable procurement.

For the fourth time in a row, Lenzing has been awarded platinum status by EcoVadis. This puts Lenzing in the top one percent of companies rated by EcoVadis worldwide. Lenzing achieved the greatest progress this year in the categories of sustainable procurement and ethics. Lenzing also outperformed the previous year in the areas of labor and human rights as well as certifications. Since its foundation in 2007, EcoVadis has developed into on of the largest and most trusted providers of sustainability ratings for companies and has created a global network of more than 130,000 rated companies worldwide. The methodological framework evaluates companies' policies, measures and activities, as well as their published reports on the environment, labor and human rights, ethics, and sustainable procurement.

In line with its "Naturally Positive" sustainability strategy, the Lenzing Group has set ambitious targets in each of its core strategic areas to further strengthen its transition from a linear to a circular economy model. Every year, Lenzing provides updates on its sustainability initiatives and the progress made in its annual sustainability report. This level of commitment and transparency was also positively emphasized by EcoVadis in its assessment.

07.08.2024

Lenzing: Improvement in Operating Result

  • Revenue up 4.8 percent year-on-year to EUR 1.31 bn in the first half of 2024
  • Performance program shows effect: EBITDA up 20.4 percent year-on-year to EUR 164.4 mn in in the first half of 2024
  • Free cash flow of EUR 141.5 mn (compared with minus EUR 165.4 mn in in the first half of 2023)
  • Lenzing confirms EBITDA guidance for 2024

The Lenzing Group reports a gradual improvement in its business performance in the first half of 2024. As expected, the recovery of the markets relevant to Lenzing proved to be sluggish. Although fiber sales volumes increased, fiber prices remained at a low level. The cost of raw materials and energy remained high. At the same time, logistics costs rose significantly in the reporting period.

Outlook
The IMF left its growth forecast for 2024 unchanged at 3.2 percent and raised it to 3.3 percent for 2025. Nevertheless, a number of risks for the global economy remain.

Forecasting future economic growth is rendered more difficult by smoldering global conflicts, trade disputes, and the uncertain outcome of elections, including the USA and the EU.

  • Revenue up 4.8 percent year-on-year to EUR 1.31 bn in the first half of 2024
  • Performance program shows effect: EBITDA up 20.4 percent year-on-year to EUR 164.4 mn in in the first half of 2024
  • Free cash flow of EUR 141.5 mn (compared with minus EUR 165.4 mn in in the first half of 2023)
  • Lenzing confirms EBITDA guidance for 2024

The Lenzing Group reports a gradual improvement in its business performance in the first half of 2024. As expected, the recovery of the markets relevant to Lenzing proved to be sluggish. Although fiber sales volumes increased, fiber prices remained at a low level. The cost of raw materials and energy remained high. At the same time, logistics costs rose significantly in the reporting period.

Outlook
The IMF left its growth forecast for 2024 unchanged at 3.2 percent and raised it to 3.3 percent for 2025. Nevertheless, a number of risks for the global economy remain.

Forecasting future economic growth is rendered more difficult by smoldering global conflicts, trade disputes, and the uncertain outcome of elections, including the USA and the EU.

Consumers are holding back on unnecessary purchases in an environment of rising prices, falling real wages in some cases, and concerns about economic growth. This is hampering a revival of the consumer apparel market, which is important for Lenzing.

The currency environment is expected to remain volatile in the regions relevant to Lenzing.

In the trend-setting market for cotton, a reduction in stock levels and a stable price trend at a low level is expected for the remainder of the 2023/2024 harvest season.

Earnings visibility remains limited overall.

Revenue and earnings in the first half of the year exceeded Lenzing’s expectations, despite the persistently difficult market. Lenzing is ahead of schedule with the implementation of its performance program. The company expects that the measures will make a greater contribution to further improving earnings in the coming quarters.

Taking the aforementioned factors into consideration, the Lenzing Group confirms its guidance for the 2024 financial year of year-on-year higher EBITDA.

Structurally, Lenzing continues to anticipate growth in demand for environmentally responsible fibers for the textile and clothing industry as well as for the hygiene and medical sectors. As a consequence, Lenzing is very well positioned with its strategy and is pushing both profitable growth with specialty fibers and the further expansion of its market leadership in the sustainability area.

Source:

Lenzing AG

31.07.2024

Lenzing: Project CELLFIL for transformation of the textile value chain

The Lenzing Group is working with the non-profit organisation RTDS Group and 13 other partners from research and industry to promote the scaling of lyocell filaments as part of the CELLFIL project. Co-funded by the EU with EUR 6.9 million, the project aims to drive the reformation of the textile industry towards greater sustainability and a circular economy.

The Lenzing Group is working with the non-profit organisation RTDS Group and 13 other partners from research and industry to promote the scaling of lyocell filaments as part of the CELLFIL project. Co-funded by the EU with EUR 6.9 million, the project aims to drive the reformation of the textile industry towards greater sustainability and a circular economy.

The Austrian organisation RTDS has launched the CELLFIL project with great vision. In close cooperation with Lenzing Group, which is at the technical helm of the project, CELLFIL aims to reform the textile industry. The centrepiece of the project is the sustainable and robust production of lyocell filaments. By optimising the entire fabric production process and its intermediate processing steps, the aim is to replace synthetic fibers with environmentally friendly lyocell filaments in recyclable end applications. This approach aims to develop and utilise alternative raw material sources for textiles. The realisation of these goals is crucial for scaling up lyocell filament production and promoting a circular economy that represents an environmentally friendly alternative to the currently dominant fossil-based synthetic filaments.

CELLFIL is part of the EU research and innovation program Horizon Europe and is supported by 15 partners from eight different countries. EUR 6.9 million from the European Union's Horizon Europe program has been made available for the implementation of this initiative. The European Commission has presented a visionary roadmap for the future of textiles, aiming for a circular economy in which all textiles on the EU market are durable, repairable and recyclable. This underlines Europe's commitment to sustainable innovation and a greener future in the textile sector.

Source:

Lenzing AG

Natural Materials Panel at Functional Fabric Fair (c) Formidable Media
10.07.2024

Natural Materials Panel at Functional Fabric Fair

  • “Natural Materials: The Path Towards Brand Responsibility” Panel Discussion Comes to Functional Fabric Fair in NYC

As global regulations and increased customer concern drive the demand for sustainable products, forward thinking brands are increasingly turning to natural materials as a sustainable alternative.

This panel will spotlight how newer biomass-based textiles are complementing established materials like down and wool to not only enhance performance but also to meet evolving consumer demands for eco-friendly products.

Hosted by textile industry communications agency Formidable Media and scheduled for Tuesday, July 16, this panel will provide an inside look at how natural materials can be leveraged to grow brand responsibility while elevating textile performance.

  • “Natural Materials: The Path Towards Brand Responsibility” Panel Discussion Comes to Functional Fabric Fair in NYC

As global regulations and increased customer concern drive the demand for sustainable products, forward thinking brands are increasingly turning to natural materials as a sustainable alternative.

This panel will spotlight how newer biomass-based textiles are complementing established materials like down and wool to not only enhance performance but also to meet evolving consumer demands for eco-friendly products.

Hosted by textile industry communications agency Formidable Media and scheduled for Tuesday, July 16, this panel will provide an inside look at how natural materials can be leveraged to grow brand responsibility while elevating textile performance.

The discussion will feature insights from leaders in sustainability and textile innovation, exploring the opportunities and challenges in adopting natural materials within supply chains. Attendees can expect a deep dive into the latest advancements and best practices that are shaping the future of responsible sourcing and manufacturing in the textile sector.

Panelists include:

  • Matthew Betcher, Creative Director, ALLIED Feather + Down
  • Monica Ebert, Business Development and Sustainability, Manager, Woolmark
  • Sharon Perez, Senior Business Development Manager, Lenzing Group
  • Chad Kelly, President, eVent Fabrics
Source:

Formidable Media

Lenzing appoints new Executive Vice President of Commercial Textiles (c) Kit Ping Au Yeung
Kit-Ping Au Yeung, Executive Vice President of Commercial Textiles, Lenzing AG
05.07.2024

Lenzing appoints new Executive Vice President of Commercial Textiles

Lenzing Group announces the appointment of Kit Ping Au-Yeung as the Executive Vice President of Commercial Textiles with immediate effect. This strategic leadership appointment highlights Lenzing’s commitment to strengthen its integral leadership roles and fuel the growth of its core textile businesses. Kit Ping succeeds Florian Heubrandner, who will take on a new role as Executive Vice President of Filament to reinforce the expansion of Lenzing’s global filament business.

Lenzing Group announces the appointment of Kit Ping Au-Yeung as the Executive Vice President of Commercial Textiles with immediate effect. This strategic leadership appointment highlights Lenzing’s commitment to strengthen its integral leadership roles and fuel the growth of its core textile businesses. Kit Ping succeeds Florian Heubrandner, who will take on a new role as Executive Vice President of Filament to reinforce the expansion of Lenzing’s global filament business.

In her new role, Kit Ping will be leading the expansion strategy and development of Lenzing’s textiles business, which comprises of fiber offerings under the flagship TENCEL™ and LENZING™ ECOVERO™ brands. With decades of experience working with partners across the textile value chain, Kit Ping will continue to foster the development of Lenzing’s textile business through driving innovative fiber and application solutions for customers, and ultimately bring benefits to consumers. Prior to joining Lenzing, Kit Ping held several regional and global commercial and operational leadership roles at Coats Group, as well as more recently at Amann Group. Her experience will add value to Lenzing’s core business, affirming Lenzing’s dedication to driving a positive impact across the industry ecosystem.

From 1 July 2024 onward, Florian Heubrandner will focus on driving the strategy and expansion of Lenzing’s filament business with his established expertise in the value chain. He will work alongside Lenzing’s Research and Development and Engineering teams to establish filament as a separate business with a strong focus on innovation and growth.

Source:

Lenzing AG

28.06.2024

Lenzing AG: Stephan Sielaff leaves, Rohit Aggarwal joins

The Supervisory Board of Lenzing Group has appointed Rohit Aggarwal as a new member of the Management Board of Lenzing Group. He will assume responsibility for the fiber division during the third quarter. After the departure of Stephan Sielaff, Aggarwal will take over the position of CEO of Lenzing Group.

Rohit Aggarwal has a sound understanding of the strategic development of international markets and the establishment of efficient management teams through global management positions in Europe, the USA and Asia. Thanks to his experience in the global textile and fiber market, he is well versed with Lenzing's core business in all its facets, both in terms of content and geography.

Stephan Sielaff, CEO of Lenzing Group, will leave the company at the latest when his contract expires at the end of March 2025 and devote himself to new tasks.

The Supervisory Board of Lenzing Group has appointed Rohit Aggarwal as a new member of the Management Board of Lenzing Group. He will assume responsibility for the fiber division during the third quarter. After the departure of Stephan Sielaff, Aggarwal will take over the position of CEO of Lenzing Group.

Rohit Aggarwal has a sound understanding of the strategic development of international markets and the establishment of efficient management teams through global management positions in Europe, the USA and Asia. Thanks to his experience in the global textile and fiber market, he is well versed with Lenzing's core business in all its facets, both in terms of content and geography.

Stephan Sielaff, CEO of Lenzing Group, will leave the company at the latest when his contract expires at the end of March 2025 and devote himself to new tasks.

More information:
Lenzing AG CEO
Source:

Lenzing AG

12.06.2024

Lenzing welcomes new shareholder Suzano S/A

The Lenzing Group learned that Lenzing's main shareholder B&C Group and the Brazilian pulp producer Suzano S/A have signed a long-term partnership in connection with the majority stake in Lenzing. As part of this agreement, Suzano S/A will take over a 15 percent stake in Lenzing AG from B&C Group. Suzano is the world's largest pulp producer based in Sao Paolo and recently achieved annual sales of more than EUR 7 billion.

Lenzing's management welcomes the proposed transaction and looks forward working with another core shareholder.

The Lenzing Group learned that Lenzing's main shareholder B&C Group and the Brazilian pulp producer Suzano S/A have signed a long-term partnership in connection with the majority stake in Lenzing. As part of this agreement, Suzano S/A will take over a 15 percent stake in Lenzing AG from B&C Group. Suzano is the world's largest pulp producer based in Sao Paolo and recently achieved annual sales of more than EUR 7 billion.

Lenzing's management welcomes the proposed transaction and looks forward working with another core shareholder.

Source:

Lenzing AG

Lenzing honoured with Vienna Stock Exchange Sustainability Award (c) Wiener Börse AG/APA-Fotoservice/Daniel Hinterramskogler/Ludwig Schedl
05.06.2024

Lenzing honoured with Vienna Stock Exchange Sustainability Award

The Lenzing Group once again received the Austrian sustainability award for top listed companies, the Vienna Stock Exchange VÖNIX Sustainability Award. Lenzing takes the first place in the ‘Industrials’ category. The award honours those companies that stand out on the capital market with their sustainability performance. According to the VBV (Austrian Sustainability Index), which is the sustainability benchmark of the Austrian stock market, the Lenzing Group achieved the best score in its category.

The Lenzing Group once again received the Austrian sustainability award for top listed companies, the Vienna Stock Exchange VÖNIX Sustainability Award. Lenzing takes the first place in the ‘Industrials’ category. The award honours those companies that stand out on the capital market with their sustainability performance. According to the VBV (Austrian Sustainability Index), which is the sustainability benchmark of the Austrian stock market, the Lenzing Group achieved the best score in its category.

Other environmental organisations and rating agencies have also already testified to Lenzing's efforts in the area of sustainability and the transformation to a circular economy: For the third year in a row, Lenzing received a place on the annual ‘A list’ in all categories of the global non-profit environmental organisation CDP. This makes Lenzing one of only ten companies worldwide to receive a triple ‘A’ - out of over 21,000 companies assessed. Lenzing was also once again awarded platinum status in the EcoVadis CSR rating. This puts Lenzing in the top one per cent of companies rated by EcoVadis. MSCI awarded Lenzing an ‘AA’ rating for the third time in a row, placing the company among the top eight per cent of rated companies in its peer group.

Source:

Lenzing AG

08.05.2024

Lenzing: Revenue and earnings growth in first quarter of 2024

  • Revenue up 5.7 percent year-on-year to EUR 658.4 million
  • EBITDA more than doubles year-on-year to EUR 71.4 million
  • Free cash flow of EUR 87.3 million (compared with minus EUR 132.3 million in the first quarter of 2023) and thereby positive for the third consecutive quarter
  • Performance program shows positive effect on revenue, EDITDA, and free cash flow
  • Lenzing confirms EBITDA guidance for 2024

The Lenzing Group, a leading supplier of regenerated cellulose for the textile and nonwovens industries, recorded a further improvement in fiber sales volumes in the first quarter of 2024. An expected recovery in markets relevant for Lenzing has to date failed to materialize. Fiber prices remained at a low level. Although the costs of raw materials and energy continued to decrease, they remained higher than in the pre-crisis 2019 year.

  • Revenue up 5.7 percent year-on-year to EUR 658.4 million
  • EBITDA more than doubles year-on-year to EUR 71.4 million
  • Free cash flow of EUR 87.3 million (compared with minus EUR 132.3 million in the first quarter of 2023) and thereby positive for the third consecutive quarter
  • Performance program shows positive effect on revenue, EDITDA, and free cash flow
  • Lenzing confirms EBITDA guidance for 2024

The Lenzing Group, a leading supplier of regenerated cellulose for the textile and nonwovens industries, recorded a further improvement in fiber sales volumes in the first quarter of 2024. An expected recovery in markets relevant for Lenzing has to date failed to materialize. Fiber prices remained at a low level. Although the costs of raw materials and energy continued to decrease, they remained higher than in the pre-crisis 2019 year.

Outlook
Even though the IMF has upgraded its growth forecast for 2024 from 3.1 percent to 3.2 percent, a number of risks remain for the global economy: potential geopolitical shocks, persistently higher inflation and key interest rates, as well as market risks emanating from the Chinese real estate market are currently considered to be the most relevant.

General inflation and falling incomes in real terms are continuing to exert a negative impact on consumer sentiment. A recovery in the consumer clothing market, which is important for Lenzing, will also depend on a further normalization of stock levels.

The currency environment is expected to remain volatile in regions relevant to Lenzing.

In the trend-setting market for cotton, a stable price trend is expected for the 2023/2024 harvest season.

Earnings visibility remains limited overall.

Revenue and earnings in the first quarter exceeded Lenzing’s expectations, despite the persistently difficult market. Lenzing is ahead of schedule with the implementation of its performance program. By appointing a separate Managing Board member, the projects identified to date are to be implemented even more rapidly, and new potentials are to be leveraged. Lenzing expects that these measures will increasingly contribute to further earnings improvement over the coming quarters compared to the first quarter of 2024.

Taking the aforementioned factors into consideration, the Lenzing Group confirms its guidance for the 2024 financial year of year-on-year higher EBITDA.

In structural terms, Lenzing continues to anticipate growth in demand for environmentally responsible fibers for the textile and clothing industry as well as the hygiene and medical sectors. As a consequence, Lenzing is well positioned with its “Better Growth” strategy and plans to continue driving growth with specialty fibers as well as its sustainability goals, including the transformation from a linear to a circular economy model.

Source:

Lenzing Group

06.05.2024

Lenzing: Outstanding results for social sustainability

The Lenzing Group has achieved outstanding results in the Higg Facility Social & Labor Module (FSLM) certification for five of its production sites. This involved measuring the social impact of production in areas such as wages, working hours, health and safety and treatment of employees.

One of Lenzing's key sustainability goals is to obtain a valid, independently audited and accredited social standard certificate for each of the Lenzing Group's production sites by 2024. This goal is pursued through the Higg Facility Social & Labor Module (Higg FSLM), which assesses social and labor-related conditions. In 2023, more than 7,200 companies worldwide underwent this audit, with Lenzing's result placing it in the top 25 percent of all verified Higg FSLM facilities.

The Lenzing Group has achieved outstanding results in the Higg Facility Social & Labor Module (FSLM) certification for five of its production sites. This involved measuring the social impact of production in areas such as wages, working hours, health and safety and treatment of employees.

One of Lenzing's key sustainability goals is to obtain a valid, independently audited and accredited social standard certificate for each of the Lenzing Group's production sites by 2024. This goal is pursued through the Higg Facility Social & Labor Module (Higg FSLM), which assesses social and labor-related conditions. In 2023, more than 7,200 companies worldwide underwent this audit, with Lenzing's result placing it in the top 25 percent of all verified Higg FSLM facilities.

A recent study by the Society for Applied Economic Research in Innsbruck (Austria)1 emphasises Lenzing's responsibility as an important employer. The Lenzing Group creates a total of 25,292 jobs in the five countries in which it operates production facilities. This figure includes not only employees, but also indirect jobs - because every direct job created creates more than two additional indirect jobs in other sectors of the economy.

1 GAW Wirtschaftsforschung: Economic and Regional Importance of the Lenzing Group in 2023; March 2024

Source:

Lenzing Group

rain forest Formidable Media
09.04.2024

“Designing for Circularity” Panel Discussion in Portland

Quickly becoming the benchmark for sustainability, circularity presents a simple solution for many of the world’s complex waste issues. However, in a quickly changing textile marketplace with increasing regulatory pressures, designing circular products can be anything but simple.

To help demystify this accelerating paradigm shift, the Designing for Circularity panel is coming to Portland’s Functional Fabric Fair, where expert panelists will inform and inspire the next generation of product designers and developers.

Scheduled for Wednesday, April 17th at 2:00pm and hosted by textile industry communications agency Formidable Media, the Designing for Circularity panel will bring together experts in materials sourcing, textile finishes, trims, sustainability, recycling, natural materials, and more, to help designers, product developers, and brand representatives make the choices needed to become leaders in the future of sustainable products.

Quickly becoming the benchmark for sustainability, circularity presents a simple solution for many of the world’s complex waste issues. However, in a quickly changing textile marketplace with increasing regulatory pressures, designing circular products can be anything but simple.

To help demystify this accelerating paradigm shift, the Designing for Circularity panel is coming to Portland’s Functional Fabric Fair, where expert panelists will inform and inspire the next generation of product designers and developers.

Scheduled for Wednesday, April 17th at 2:00pm and hosted by textile industry communications agency Formidable Media, the Designing for Circularity panel will bring together experts in materials sourcing, textile finishes, trims, sustainability, recycling, natural materials, and more, to help designers, product developers, and brand representatives make the choices needed to become leaders in the future of sustainable products.

“Fashion is regularly listed among the top five largest polluting industries in the world and our panel of experts hope to  help shape future design and sustainability decisions to mitigate fashion’s outsized impact on the environment,” said Scott Kaier, Founder and President of Formidable Media. “Informed and innovative design is the first step in creating circular products, so today’s designers will be instrumental in creating a cleaner, more sustainable future.”

Hand-picked from across the outdoor, fashion, lifestyle, and footwear industries, the Designing for Circularity panelists include:

  • Daniel Uretsky, President, ALLIED Feather + Down
  • Martin Flora, VP of Business Development, Green Theme Technologies
  • Sarah Schlinger, R&D Commercialization Manager, Woolmark
  • Sharon Perez, Senior Business Development Manager, Lenzing Group
  • Brian La Plante, Senior Manager of Sustainability, YKK
  • Theresa McKenney Director of Sustainability, NEMO Equipment
Source:

Formidable Media