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08.10.2021

Price increase for MERACRYL™ MMA (methyl methacrylate) and other methacrylate monomer products

Due to soaring natural gas and ammonia prices, Röhm GmbH announces a price increase for MERACRYL™ MMA (methyl methacrylate) and other methacrylate monomer products in Europe with immediate effect.

As agreements allow, the increase is:

MERACRYL™ MMA: 130 EUR/mt
MERACRYL™ GMAA: 130 EUR/mt
MERACRYL™ n-BMA: 95 EUR/mt
MERACRYL™ i-BMA: 95 EUR/mt
MERACRYL™ HEMA 98: 110 EUR/mt
MERACRYL™ HPMA 98: 110 EUR/mt

Due to soaring natural gas and ammonia prices, Röhm GmbH announces a price increase for MERACRYL™ MMA (methyl methacrylate) and other methacrylate monomer products in Europe with immediate effect.

As agreements allow, the increase is:

MERACRYL™ MMA: 130 EUR/mt
MERACRYL™ GMAA: 130 EUR/mt
MERACRYL™ n-BMA: 95 EUR/mt
MERACRYL™ i-BMA: 95 EUR/mt
MERACRYL™ HEMA 98: 110 EUR/mt
MERACRYL™ HPMA 98: 110 EUR/mt

Source:

Röhm GmbH

29.09.2021

Archroma announces a general price increase across its portfolio

Effective 01 October 2021, Archroma will increase the prices of its products by up to 0.25 USD per kg. These adjustments will apply to all Archroma products globally. The increase is necessary to offset the ongoing exceptionally high freight and logistics costs.

“Archroma made every effort to absorb these increases,” says Marcos Furrer, Chief Operating Officer at Archroma. “We have however reached a point where these adjustments are needed for us to be able to maintain our service levels.”

Effective 01 October 2021, Archroma will increase the prices of its products by up to 0.25 USD per kg. These adjustments will apply to all Archroma products globally. The increase is necessary to offset the ongoing exceptionally high freight and logistics costs.

“Archroma made every effort to absorb these increases,” says Marcos Furrer, Chief Operating Officer at Archroma. “We have however reached a point where these adjustments are needed for us to be able to maintain our service levels.”

More information:
Archroma
Source:

EMG for Archroma

08.09.2021

Indorama Mobility Group: General price increase effective October 1st 2021

The Indorama Mobility Group, a manufacturer of industrial fibers, cords and fabrics, - like other companies - is confronted with significant inflation since the beginning of the year. The global economy has gradually recovered in 2021 from the impact of the COVID-19 pandemic, but is still experiencing very volatile market conditions: The global freight remains unreliable and expensive, cost for energy and global commodities is increasing, and the increasing focus on sustainability and environmental impact is driving compliance cost upward in most part of the world.

In detail:

The Indorama Mobility Group, a manufacturer of industrial fibers, cords and fabrics, - like other companies - is confronted with significant inflation since the beginning of the year. The global economy has gradually recovered in 2021 from the impact of the COVID-19 pandemic, but is still experiencing very volatile market conditions: The global freight remains unreliable and expensive, cost for energy and global commodities is increasing, and the increasing focus on sustainability and environmental impact is driving compliance cost upward in most part of the world.

In detail:

  • Utilities: gas price has tripled in the past few months in Europe (from a level of 15 EUR/MWh in Q4’20 to 45 EUR/MWh recently), while increasing by 50% in USA
  • CO2 emissions and compliance cost: prices for CO2 certificates in Europe have almost doubled, approaching 60 EUR/ton from 30 EUR/ton at the end of last year, while regulations continue to expand the need for CO2 compensation
  • Chemicals and additives (spinfinish, dip chemicals, coating & laminating chemicals): cost have increased by 5%
  • Packaging: prices for standard packaging materials have increased by more than 30%
  • Logistic: despite our local manufacturing footprint which is not fully affected by global freight issues, the regional logistic costs are also increasing up to 20% (road transport)

Despite constant efforts to optimise the cost structure through comprehensive initiatives to improve operations, cost increases have now reached a level, the group said, that can no longer be offset and must be passed on to the market. This is a necessary step to be able to continue supplying high-quality products and services of the broad product portfolio, it said.

More information:
Indorama Mobility Group
Source:

Indorama Mobility Group

09.06.2021

EURATEX calls for an effective EU Industrial strategy

On the occasion of releasing its 2021 Spring Report, EURATEX calls the European Institutions to implement a new Industrial Strategy which will effectively support the European textiles industry. EURATEX welcomes the fact that Textile and Clothing industry is recognised as one of the 14 essential ecosystems of the European economy, but we need to take effective measures to support these sectors, and take into consideration the global dimension.

On the occasion of releasing its 2021 Spring Report, EURATEX calls the European Institutions to implement a new Industrial Strategy which will effectively support the European textiles industry. EURATEX welcomes the fact that Textile and Clothing industry is recognised as one of the 14 essential ecosystems of the European economy, but we need to take effective measures to support these sectors, and take into consideration the global dimension.

Economic data for 2020 in EURATEX Spring Report show preoccupying trends. Figures reflect a dramatic contraction in demand and production: EU turnover contracted by -9.3% in textiles (which is in line with the general manufacturing average) and by -17.7% in clothing, compared with 2019. Furthermore, supply chain disruptions and substantial price increases of some raw materials are putting significant pressure on the T&C industries across Europe. The trade deficit for European textiles and clothing jumped from € -47 bln in 2019 to € -62 bln in 2020, an increase of more than 30%, which is almost entirely due to the import of Chinese face masks and related products. Fortunately, more recent figures from the 1st quarter of 2021 indicate some signs of recovery.

That figure illustrates very well today’s political discussions on the future of the European industry. Many European companies have made considerable efforts to adapt their production to the pandemic, but clearly this was not enough. Whether the production cost in Europe is too high or the EU should adapt its procurement rules, the industry needs have a coherent long-term plan to become more competitive and conquer new markets.

EURATEX General Assembly highlighted the critical role of the new EU Industrial Strategy. The inclusion of textiles and clothing in the fourteen ecosystems is a step in the right direction to consolidate the industrial base but we should look also at the global challenges. European companies should continue investing in innovation, design and quality, in combination with a structural move towards more sustainable textiles. At the same time, the EU should create an environment - both inside the Single Market and globally - where everybody plays by the same rules.

Source:

Euratex

Logo Archroma (c) Archroma
06.11.2020

Archroma announces 20% price increase for its fluorochemical range

Archroma, a global leader in specialty chemicals towards sustainable solutions, today announced an increase of up to 20% in the selling prices of its Nuva® N and Fluowet® fluorocarbon polymers.

Fluorocarbon polymers are typically used in essential applications where a water and/or oil barrier is needed, such as personal protective equipment (PPE) for health professionals, or other technical textiles.

As a global leader in the area of repellency treatments, we have the responsibility to develop and produce products with the highest level of sustainability – economically and ecologically.

The price increase has become necessary to support the increasing regulatory and other costs, as well as ongoing investments that Archroma continuously makes in its own manufacturing technology and process, to produce fluorochemicals in the safest possible way for the consumer and the environment.

The price increase will be effective from November 16, 2020, in all regions and markets, for all new orders and as contracts allow.

 

® Trademarks of Archroma registered in many countries

Archroma, a global leader in specialty chemicals towards sustainable solutions, today announced an increase of up to 20% in the selling prices of its Nuva® N and Fluowet® fluorocarbon polymers.

Fluorocarbon polymers are typically used in essential applications where a water and/or oil barrier is needed, such as personal protective equipment (PPE) for health professionals, or other technical textiles.

As a global leader in the area of repellency treatments, we have the responsibility to develop and produce products with the highest level of sustainability – economically and ecologically.

The price increase has become necessary to support the increasing regulatory and other costs, as well as ongoing investments that Archroma continuously makes in its own manufacturing technology and process, to produce fluorochemicals in the safest possible way for the consumer and the environment.

The price increase will be effective from November 16, 2020, in all regions and markets, for all new orders and as contracts allow.

 

® Trademarks of Archroma registered in many countries

Source:

Archroma / EMG

Reach Group: Composites China Trade Show (c) REACH Group
10.09.2020

AMAC/Germany and REACH Group/China: first life business activity since Covid-19 at the Composites China Trade Show in Shanghai

As the first composites trade show worldwide since the Covid-19-crisis, the China Composites in Shanghai (September 2 to 4, 2020) took up its activity. The show counted about 600 exhibitors and over 20 000 visitors, mostly Chinese locals, attended the exhibition.

Chinese Reach Group under the lead of its president Daniel He represented a large portfolio of European companies and their recent developments through their cooperation with Dr. Michael Effing´s AMAC/Germany, among them Airborne (NL), Textechno (D) and Conbility (D).

As the first composites trade show worldwide since the Covid-19-crisis, the China Composites in Shanghai (September 2 to 4, 2020) took up its activity. The show counted about 600 exhibitors and over 20 000 visitors, mostly Chinese locals, attended the exhibition.

Chinese Reach Group under the lead of its president Daniel He represented a large portfolio of European companies and their recent developments through their cooperation with Dr. Michael Effing´s AMAC/Germany, among them Airborne (NL), Textechno (D) and Conbility (D).

Daniel He describes the situation: „The Chinese market is picking up again; a price increase of 7% for glass fibers was announced right before the China Composites Show, on August 25th 2020, which was even leading to a temporary material shortage. Today, the most booming industries in China are wind energy, building and infrastructure and innovation for electric cars. Unlike the rest of the world, where the aircraft industry undergoes a deep decline, in China it takes up by 50 %, which is very promising. Furthermore, we expect half a year for a full recovery of the industry, while the China growth of 2020 is still expected to be between 2 and 4 %.“

Michael Effing replied: “Enabling the composites business between China and Europe is the aim of our cooperation with Reach and with our customers, which are active in digital automatization, testing equipment or cost optimization software. We are very happy to have been present in China through our representant Reach and are looking forward to bridge and overcome the Covid-19-crisis with our upcoming event in Germany, the Composites for Europe in Stuttgart in November and hope to be back to full global business speed at the JEC in Paris in 2021.“

Source:

AMAC GmbH

14.03.2019

Lenzing Group achieves fourth best full-year results in its history

  • Challenging market environment due to low prices for standard viscose, less favorable exchange rates and higher raw material and energy prices
  • Very positive development of specialty fiber business with revenue share exceeding 45 percent
  • Dividend proposal of EUR 3.00/share plus a special dividend of EUR 2.00/share
  • Results for 2019 expected at about the level of 2018 despite a significantly more demanding market environment

The Lenzing Group’s business developed well in the 2018 financial year. A significantly more challenging market environment led to a decline in revenue as well as earnings compared with the record results of the previous year. This was primarily caused by lower selling prices for standard viscose, exchange rate effects as well as higher raw material and energy costs.

  • Challenging market environment due to low prices for standard viscose, less favorable exchange rates and higher raw material and energy prices
  • Very positive development of specialty fiber business with revenue share exceeding 45 percent
  • Dividend proposal of EUR 3.00/share plus a special dividend of EUR 2.00/share
  • Results for 2019 expected at about the level of 2018 despite a significantly more demanding market environment

The Lenzing Group’s business developed well in the 2018 financial year. A significantly more challenging market environment led to a decline in revenue as well as earnings compared with the record results of the previous year. This was primarily caused by lower selling prices for standard viscose, exchange rate effects as well as higher raw material and energy costs.

Group revenue declined by 3.7 percent compared with the previous year to EUR 2.18 bn. The predicted challenging market environment for standard viscose, plus less favorable exchange rates and a slight decline in sales volume were the key contributing factors. EBITDA (earnings before interest, tax, depreciation and amortization) was down by 24 percent to EUR 382 million due to price increases for key raw materials and higher energy and personnel costs. The EBITDA margin dropped from 22.2 percent in the 2017 financial year to 17.6 percent in the reporting year. EBIT (earnings before interest and tax) fell by 36 percent to EUR 237.6 mn, leading to a lower EBIT margin of 10.9 percent (2017: 16.4 percent). Net profit for the year after one-off effects dropped by 47.4 percent from EUR 281.7 mn in the previous year to EUR 148.2 mn. Earnings per share equaled EUR 5.61 (2017: EUR 10.47).

The Management Board and the Supervisory Board will propose a stable dividend of EUR 3.00 per share plus a special dividend of EUR 2.00 per share at the upcoming Annual General Meeting. In total, the paid dividend will amount to EUR 5.00 per share, corresponding to a dividend payment to shareholders of roughly EUR 133 mn.

More information:
Lenzing Group
Source:

Lenzing AG

(c) Lenzing AG
07.11.2018

Lenzing Group reports solid results in a demanding market environment

Decline in revenue due to lower prices for standard viscose, less favorable currencies and lower production volume

  • Pressure on prices for key raw materials remains high
  • Positive impact due to focus on specialty fibers and further optimization of the product mix
  • Expansion project in Mobile temporarily mothballed
  • Acquisition of the remaining 30 percent of Lenzing (Nanjing) Fibers Co. Ltd.

The Lenzing Group recorded a solid business development in the first three quarters of 2018. The decline in revenue and earnings compared with the same period of the previous year was essentially based on a mix of lower prices for standard viscose, more unfavorable exchange rates and price increases for key raw materials. The Lenzing Group’s strategic orientation with a focus on specialty fibers had a positive impact in this environment.

Decline in revenue due to lower prices for standard viscose, less favorable currencies and lower production volume

  • Pressure on prices for key raw materials remains high
  • Positive impact due to focus on specialty fibers and further optimization of the product mix
  • Expansion project in Mobile temporarily mothballed
  • Acquisition of the remaining 30 percent of Lenzing (Nanjing) Fibers Co. Ltd.

The Lenzing Group recorded a solid business development in the first three quarters of 2018. The decline in revenue and earnings compared with the same period of the previous year was essentially based on a mix of lower prices for standard viscose, more unfavorable exchange rates and price increases for key raw materials. The Lenzing Group’s strategic orientation with a focus on specialty fibers had a positive impact in this environment.

Revenue decreased by 5.2 percent to EUR 1,636.2 mn over the comparative period of the previous year. Apart from the high starting base, this was primarily attributable to the expected challenging market environment for standard viscose, less favorable exchange rates and lower production volume. EBITDA (earnings before interest, tax, depreciation and amortization) recorded a decline by 26.8 percent to EUR 290.6 mn due to price increases for key raw materials and higher energy and dissolving wood pulp prices. The EBITDA margin dropped from 23 percent in the first three quarters of the previous year to 17.8 percent. EBIT (earnings before interest and tax) fell by 36.2 percent to EUR 190.3 mn, leading to a lower EBIT margin of 11.6 percent (01-09/2017: 17.3 percent). Net profit for the period dropped by 39 percent from EUR 219.3 mn in the previous year to EUR 133.8 mn. Earnings per share equaled EUR 5.06 (01-09/2017: EUR 8.12).

“The Lenzing Group is currently operating in a challenging environment. Against this background, we are satisfied with the solid business development and the corporate strategy sCore TEN has a positive impact. The new production line in Heiligenkreuz started up successfully and customers’ feedback has been positive,” says Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “While many viscose producers are faced with a very tense profit situation, we are well positioned due to our specialty strategy and still expect a satisfactory full year”, Doboczky adds.

Key strategic measures were implemented during the first three quarters of 2018 in line with the sCore TEN strategy. The start-up of new capacities for lyocell fibers in Heiligenkreuz, the production start of LENZING™ ECOVERO™ fibers at the Nanjing site and the investment in another pilot line for TENCEL™ Luxe filaments are important steps to accomplish the goal of increasing the share of specialty fibers in total revenue.

Project in Mobile temporarily mothballed
Due to the decision to temporarily mothball the lyocell expansion project in Mobile, Alabama (USA), in view of the buoyant US labor market and trade tensions between the major trading blocks, the implementation of the expansion plan for specialty staple fibers will be slowed down. The Lenzing Group will put all its effort to readjust the execution of its growth plan to meet strong market demand for its lyocell fibers. This includes an increased focus on the lyocell expansion project in Prachinburi (Thailand).

Advancing forward solutions
Regarding the capacity expansion for specialty products such as TENCEL™ Luxe filaments and LENZING™ ECOVERO™ viscose fibers, Lenzing is still on track. After the introduction of TENCEL™ Luxe branded lyocell filament yarns in the previous year, Lenzing continues to drive innovations in the area of the value chain. In September, the company also announced the successful development of the LENZING™ Web Technology, a new technology platform focusing on sustainable nonwoven products, which will lead to new market opportunities for the industry. Following several years of research and development work and investments totaling EUR 26 mn, the pilot plant at the headquarters in Lenzing has been successfully put into operation.

Largest dissolving wood pulp line worldwide
At the end of June, the Lenzing Group and Duratex, the largest producer of industrialized wood panels of the southern hemisphere, announced that they had agreed on the terms and conditions to form a joint venture to investigate building the largest single line dissolving wood pulp plant in the state of Minas Gerais (Brazil). This decision supports the self-supply with dissolving wood pulp and the growth in specialty fibers. The joint venture is investigating the construction of a 450,000 t dissolving wood pulp plant, which is expected to become the largest and most competitive single line dissolving wood pulp plant in the world. The final investment decisionto build the dissolving wood pulp plant is subject to the outcome of the basic engineering studies and the approval by the respective supervisory boards.

Acquisition of Chinese operation
At the beginning of November the takeover by the Lenzing Group of the remaining 30 percent of its Chinese subsidiary Lenzing (Nanjing) Fibers Co. Ltd. (LNF) from its state-owned joint venture partner NCFC was completed. After closing of the transaction, the Lenzing Group will hold 100 percent of LNF. The acquisition will have a negative impact on net profit of approx. EUR 21 mn for the fiscal year 2018. The purchase of the shares supports Lenzing’s strategic growth as a producer of specialty fibers from the renewable raw material wood in China and worldwide. It paves the way to setting up further production lines for specialty fibers. Lenzing wants to convert LNF into a specialty fibers hub over time.

Expansion of capacities
CAPEX (investments in intangible assets and property, plant and equipment) rose by 35.5 percent year-on-year to EUR 174.1 mn in the first three quarters of 2018. This is primarily attributable to capacity expansions in Heiligenkreuz and the expansion of the existing dissolving wood pulp plant in Lenzing as well as the investments made so far in Mobile.

Outlook
Demand development on the global fiber market remains positive. Lenzing expects wood-based cellulosic fibers to continue to grow at a higher rate than the overall fiber market. In a challenging market environment the Lenzing Group expects solid results for 2018, albeit lower than in the outstanding last two years.

For 2019, Lenzing expects standard viscose markets to remain under pressure because of an ongoing oversupply and very high raw material prices. Lenzing’s specialty fiber business is expected to continue the very positive development.

The above-mentioned development reassures the Lenzing Group in its chosen corporate strategy sCore TEN. Lenzing is very well positioned in this market environment and will continue its consistent focus on growth with specialty fibers.

More information:
Lenzing Group
Source:

Lenzing AG

@Lenzing
Leo Neumayr
08.08.2018

Lenzing Group reports solid results in a demanding market environment

  • Decline in revenue due to volatile standard viscose prices and currencies
  • Prices for key raw materials still high
  • New production line in Heiligenkreuz in start-up phase
  • Backward integration into dissolving wood pulp to be strengthened via joint venture in Brazil

Lenzing – The Lenzing Group generated solid results in a challenging market environment in the first half of 2018. The decline in revenue and earnings compared with the first half of the previous year, which was the best half-year in the company’s history, was based on a mix of volatile prices for standard viscose and price increases for key raw materials, coupled with currency effects. The Lenzing Group’s strategic orientation with a focus on specialty fibers had a positive impact in this environment and is increasingly bearing fruit. The corporate strategy sCore TEN is being implemented with great discipline in order to expand the company’s offering of specialty fibers and even more extensively support customers and business partners.

  • Decline in revenue due to volatile standard viscose prices and currencies
  • Prices for key raw materials still high
  • New production line in Heiligenkreuz in start-up phase
  • Backward integration into dissolving wood pulp to be strengthened via joint venture in Brazil

Lenzing – The Lenzing Group generated solid results in a challenging market environment in the first half of 2018. The decline in revenue and earnings compared with the first half of the previous year, which was the best half-year in the company’s history, was based on a mix of volatile prices for standard viscose and price increases for key raw materials, coupled with currency effects. The Lenzing Group’s strategic orientation with a focus on specialty fibers had a positive impact in this environment and is increasingly bearing fruit. The corporate strategy sCore TEN is being implemented with great discipline in order to expand the company’s offering of specialty fibers and even more extensively support customers and business partners.

Revenue declined by 6.4 percent compared with the first half of the previous year to EUR 1,075.4 mn. This decrease is primarily attributable to less favorable currency exchange rates. EBITDA (earnings before interest, tax, depreciation and amortization) decreased by 28.1 percent to EUR 194.8 mn, especially due to price increases for key raw materials and higher energy prices. The EBITDA margin fell from 23.6 percent in the first half of 2017 to 18.1 percent in the first half of 2018. EBIT (earnings before interest and tax) declined by 37 percent to EUR 128.7 mn, leading to a lower EBIT margin of 12 percent (H1 2017: 17.8 percent). The net profit for the period dropped by 39.3 percent from EUR 150.3 mn in the previous year to EUR 91.3 mn. Earnings per share equaled EUR 3.44 (H1 2017: EUR 5.55).

“So far, the financial year 2018 proved to be as challenging as expected, and market headwinds were clearly noticeable. In this market environment, we are satisfied with the solid results we report. We are proud that with our corporate strategy sCore TEN and the focus on growth with specialty fibers we show big steps in the right direction. The recently announced joint venture with Duratex is another important step in executing this corporate strategy,” says Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “We will continue to implement our strategy with great discipline and are convinced that this will steadily improve the long-term profitability of Lenzing,” Doboczky adds.

Largest dissolving wood pulp line worldwide

In June, the Lenzing Group and Duratex, the largest producer of industrialized wood panels of the southern hemisphere, announced that they had agreed on the terms and conditions to form a joint venture to investigate building the largest dissolving wood pulp plant (single line concept) in the state of Minas Gerais, (Brazil). This decision supports the self-supply with dissolving wood pulp and the growth in specialty fibers, defined in Lenzing’s sCore TEN strategy. The joint venture will investigate the construction of a 450,000 t dissolving wood pulp plant, which is expected to become the largest and most competitive single line dissolving wood pulp plant in the world. The final investment decision to build the dissolving wood pulp plant is subject to the outcome of the basic engineering studies and the approval by the respective supervisory boards.

Even stronger focus on sustainable products

As a pioneer in sustainable fiber solutions, the Lenzing Group is committed to higher standards in the textile and nonwoven sectors. More than EUR 100 mn will be invested in sustainable manufacturing technologies and production facilities by 2022 in order to realize this vision. In line with the Group’s specialty strategy, another two milestones were set in the first half of 2018: Lenzing announced an investment of up to EUR 30 mn in another pilot line for the production of TENCEL™ Luxe filaments at the Lenzing site. In addition, the company also introduced the environmentally friendly process for the production of LENZING™ ECOVERO™ branded viscose fibers at its Chinese site. Both decisions contribute to better meeting the strong demand for environmentally compatible products.

Expansion of capacities

CAPEX (investments in intangible assets and property, plant and equipment) rose by 60.8 percent year-on-year to EUR 117.2 mn in the first half of 2018. This is primarily attributable to the capacity expansions in Heiligenkreuz (Austria) and Mobile, Alabama (USA) and the expansion of the existing dissolving wood pulp plant in Lenzing. The company is pressing ahead with these projects as well as with planning work on the construction of the next state-of-the-art lyocell production facility in Prachinburi (Thailand).

New brand identity

With the new positioning of its master brand and its product brands, the Lenzing Group started a new phase of branding and brand communication in the first half of 2018. Lenzing decided to carry out a new brand strategy in order to sharpen its company and product profile as a sustainable innovation leader for customers and partners along the value chain as well as for consumers. The most important pillar of this new brand strategy is a brand architecture with a focus on fewer brands and a strong message to consumers. With the TENCEL™ brand as an umbrella brand for all specialty products in the textile segment and the VEOCEL™ brand as the umbrella brand for all specialty fibers in the nonwoven segment as well as the new master brand, which was presented in March, Lenzing showcases its strengths in a targeted manner.

Outlook

The International Monetary Fund expects a further acceleration in global economic growth to 3.9 percent for 2018. However, growing protectionist tendencies in the political arena represent a source of uncertainty. Export-oriented companies in the Eurozone are faced with additional challenges from the currency environment.

Developments on the fiber markets should remain positive, but with continuing volatility. The rising demand for cotton should support prices despite the increase in production. Polyester fiber prices have stabilized after the increase in previous years.

The wood-based cellulosic fiber segment, which is relevant for Lenzing, should see further strong demand. After years of moderate capacity expansion in the viscose sector, significant additional volumes will enter the market in 2018 and 2019. As a result, standard viscose prices will remain under pressure. The Lenzing Group is very well positioned in this market environment with its corporate strategy sCore TEN and will continue its consistent focus on growth with specialty fibers.

The Lenzing Group still sees challenging market conditions for the second half of 2018. In addition to the price pressure on standard viscose, the prices of some key raw materials such as caustic soda are still at a very high level and exchange rates continue to be volatile. Our specialty fibers are expected to continue their very positive development. In this context, the Lenzing Group is satisfied with the earnings development to date, but underlines its estimate that the results for the year 2018 will be lower than the outstanding results in the last two years.

More information:
Lenzing Gruppe Sustainability
Source:

Lenzing Aktiengesellschaft