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Lenzing reports improved results in the third quarter and remains strategically on course (c) Lenzing
Lenzing reports improved results in the third quarter and remains strategically on course
04.11.2020

Lenzing reports improved results in the third quarter and remains strategically on course

  • Significant improvement in the third quarter after COVID-19-related slump on the fiber market
  • Measures for structural earnings improvement with positive impact
  • Strategic investment projects remain on track
  • Hygiene Austria joint venture: Successful growth and continued focus on certified protective masks
  • Lenzing wins the Austrian State Prize for Innovation with LENZING™ Web Technology

Lenzing – In the first three quarters of 2020, the Lenzing Group successfully responded to the extremely difficult market environment of increased pressure on prices and volume due to the COVID-19 crisis by implementing a broad package of measures and remains fully on track in terms of its strategy. The cooperation with partners along the value chains was intensified and Lenzing was agile and flexible in adjusting production volume to demand.

  • Significant improvement in the third quarter after COVID-19-related slump on the fiber market
  • Measures for structural earnings improvement with positive impact
  • Strategic investment projects remain on track
  • Hygiene Austria joint venture: Successful growth and continued focus on certified protective masks
  • Lenzing wins the Austrian State Prize for Innovation with LENZING™ Web Technology

Lenzing – In the first three quarters of 2020, the Lenzing Group successfully responded to the extremely difficult market environment of increased pressure on prices and volume due to the COVID-19 crisis by implementing a broad package of measures and remains fully on track in terms of its strategy. The cooperation with partners along the value chains was intensified and Lenzing was agile and flexible in adjusting production volume to demand. In addition, Lenzing also intensified measures for structural earnings improvement to mitigate the effect of the pressure on fiber prices and demand for fibers, and reduced its operating costs significantly as a result.

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Source:

Lenzing Aktiengesellschaft

Lenzing wins State Prize for Innovation with sustainable nonwovens technology (c) Lenzing Aktiengesellschaft
Lenzing Aktiengesellschaft
21.10.2020

Lenzing: State Prize for Innovation with sustainable nonwovens technology

  • On October, 20th, 2020, the State Prize for Innovation was awarded to the Lenzing Group for their LENZING™ Web Technology.
  • Lenzing thus received the highest award for particularly innovative achievements in Austria.

Lenzing – On Tuesday, October 20, 2020, the Lenzing Group was awarded the coveted “State Prize for Innovation”. Lenzing emerged as the winner with its project LENZING™ Web Technology and thus received the highest recognition for particularly innovative achievements in Austria. The novel process combines fiber and nonwovens production in only one step, setting new standards in terms of efficiency, circularity and ecological sustainability. Margarete Schramböck, Federal Minister for Digital and Economic Affairs, presented the award to Gert Kroner, Vice President Global Research & Development.

  • On October, 20th, 2020, the State Prize for Innovation was awarded to the Lenzing Group for their LENZING™ Web Technology.
  • Lenzing thus received the highest award for particularly innovative achievements in Austria.

Lenzing – On Tuesday, October 20, 2020, the Lenzing Group was awarded the coveted “State Prize for Innovation”. Lenzing emerged as the winner with its project LENZING™ Web Technology and thus received the highest recognition for particularly innovative achievements in Austria. The novel process combines fiber and nonwovens production in only one step, setting new standards in terms of efficiency, circularity and ecological sustainability. Margarete Schramböck, Federal Minister for Digital and Economic Affairs, presented the award to Gert Kroner, Vice President Global Research & Development.

“This award is a great recognition of our work. Our goal is to grow continuously with sustainable innovations and to look beyond our fibers, to the needs of our customers and partners and to the needs of consumers worldwide. With the LENZING™ Web Technology we have created an exciting and promising solution for eco-friendly products in line with our corporate strategy sCore TEN and support consumers in their daily needs in a sustainable way”, says Stefan Doboczky, Chief Executive Officer of the Lenzing Group.

Biodegradable nonwovens for a clean environment

The pollution of the environment by plastics is one of the most urgent problems of our time. Every day, millions of hygiene products and wipes around the globe end up in garbage and sewage. Most of them consist of up to 80 percent polyester or other fossil, non-biodegradable materials and therefore pollute the environment. With the LENZING™ Web Technology, Lenzing has developed a patented technology to counter this problem: Sustainable and eco-friendly nonwovens are produced from the renewable raw material wood. These are not only plastic-free, they also score points for their particularly high environmental friendliness. “Thanks to a unique self-bonding mechanism, in which the filaments bond with each other during the spinning process, binders, which are found in many nonwovens, are no longer needed. As a result, the nonwovens produced with LENZING™ Web Technology are 100 percent biodegradable and do not pollute either humans or the environment”, says Gert Kroner, Vice President Global Research & Development of the Lenzing Group.

The Austrian State Prize for Innovation is awarded annually by the Federal Ministry for Digital and Economic Affairs to the most innovative Austrian company. In 2020, the competition took place for the 40th time.

Lenzing AG (c) Lenzing AG
Lenzing AG
03.12.2018

Lenzing applies for 25 patents for LENZING™ Web Technology

  • Twenty-five patent applications claiming product, process and application inventions published
  • New technology platform starts with botanic wood pulp and creates a nonwoven fabric made of 100 percent continuous lyocell filament

Lenzing – The Lenzing Group filed a first wave of patent applications for its new LENZING™ Web Technology with the World Intellectual Property Organization. The 25 applications focus on product, process and application inventions and are part of Lenzing’s intellectual property protection strategy.

The LENZING™ Web Technology is a nonwoven web formation process that starts with botanic wood pulp and produces a nonwoven fabric made of 100 percent continuous lyocell filament. The technology offers a unique self-bonding mechanism where filaments bond into a fabric during the laydown process. This self-bonding mechanism allows for a much wider variety of basis weight, surface textures, drapeability and dimensional stability than other nonwoven technologies.

  • Twenty-five patent applications claiming product, process and application inventions published
  • New technology platform starts with botanic wood pulp and creates a nonwoven fabric made of 100 percent continuous lyocell filament

Lenzing – The Lenzing Group filed a first wave of patent applications for its new LENZING™ Web Technology with the World Intellectual Property Organization. The 25 applications focus on product, process and application inventions and are part of Lenzing’s intellectual property protection strategy.

The LENZING™ Web Technology is a nonwoven web formation process that starts with botanic wood pulp and produces a nonwoven fabric made of 100 percent continuous lyocell filament. The technology offers a unique self-bonding mechanism where filaments bond into a fabric during the laydown process. This self-bonding mechanism allows for a much wider variety of basis weight, surface textures, drapeability and dimensional stability than other nonwoven technologies.

“Lenzing’s corporate strategy sCore TEN is very focused on driving growth via sustainability focused innovation. The new LENZING™ Web Technology is one of the most exciting Research & Development projects. The 25 patent applications related to this new technology underline our commitment to the nonwoven industry. We will continue to support our partners in their business and help consumers with sustainable innovative solutions for their everyday needs”, says Stefan Doboczky, Chief Executive Officer of the Lenzing Group.

More information:
Lenzing AG
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