From the Sector

Elf führende Unternehmen aus sechs Ländern haben im September 2020 unter der Leitung des nova-Instituts (Deutschland) die Renewable Carbon Initiative (RCI) gegründet. Ziel der Initiative ist es, den Übergang von fossilen Rohstoffen wie Erdöl, Erdgas und Kohle zu erneuerbarem Kohlenstoff für alle organischen Chemikalien und Materialien zu unterstützen und zu beschleunigen.

Neben Lenzing sind diese zehn Unternehmen Gründungsmitglieder der RCI und bilden auch den Kernbeirat: Beiersdorf (Deutschland), Cosun Beet Company (Niederlande), Covestro (Deutschland), Henkel (Deutschland), LanzaTech (USA), NESTE (Finnland), SHV Energy (Niederlande), Stahl (Niederlande), Unilever (Großbritannien) und UPM (Finnland).

Die Renewable Carbon Initiative befasst sich mit dem Kernproblem des Klimawandels, der Gewinnung und Nutzung von fossilem Kohlenstoff. Die Vision ist klar formuliert: Bis 2050 soll fossiler Kohlenstoff vollständig durch erneuerbaren Kohlenstoff aus alternativen Quellen ersetzt werden: Biomasse, direkte CO2-Nutzung und Recycling. Die Gründer sind überzeugt, dass die organische Chemie- und Materialindustrie nur so nachhaltig, klimafreundlich und Teil der Kreislaufwirtschaft – sprich Teil der Zukunft – werden kann.

Robert van de Kerkhof, Chief Commercial Officer der Lenzing Gruppe: „Wir bei Lenzing glauben, dass wir systemischen Wandel nur durch strategische Partnerschaften erreichen können. Daher unterstützen wir die Renewable Carbon Initiative. Es ist der richtige Schritt und voll und ganz im Einklang mit unserer Unternehmensstrategie. Deshalb sind wir von Anfang an Teil der RCI und ihrer Verpflichtung, sofort zu handeln.“ Michael Carus, CEO des nova-Instituts und Leiter der Renewable Carbon Initiative: „Hier geht es um eine grundlegende Veränderung in der chemischen Industrie. So wie die Energiewirtschaft auf erneuerbare Energien umgestellt wird, wird erneuerbarer Kohlenstoff das neue Fundament der zukünftigen Chemie- und Materialindustrie. Die Initiative beginnt heute und wird von nun an sichtbar präsent sein. Wir wollen den Wandel beschleunigen.“

Die RCI will vorwiegend über drei Wege Veränderungen bewirken: Sie zielt zum einen darauf ab, branchenübergreifende Plattformen zu schaffen, die die Machbarkeit von erneuerbarem Kohlenstoff bei konkreten Aktivitäten demonstrieren. Zweitens wird ein Hauptziel darin bestehen, sich für Gesetzes-, Steuer- und Regulierungsänderungen einzusetzen, um für erneuerbaren Kohlenstoff gleiche wirtschaftliche Wettbewerbsbedingungen zu schaffen. Der dritte Weg wird schließlich darin bestehen, durch die Schärfung des Bewusstseins und des Verständnisses für erneuerbaren Kohlenstoff in der Geschäftswelt und der breiten Öffentlichkeit eine größere Anziehungskraft für nachhaltige Alternativen zu schaffen.

Mit insgesamt elf internationalen Mitgliedsunternehmen und der persönlichen Unterstützung von mehr als 100 Branchenexperten legte die RCI einen starken Start hin. Die Initiative hofft, in den kommenden Monaten viele weitere Mitglieder und Unterstützer zu gewinnen, um die starke Dynamik der Initiative aufrechtzuerhalten. Gemeinsam wird die RCI den Übergang von fossilem zu erneuerbarem Kohlenstoff für alle organischen Chemikalien und Materialien unterstützen und beschleunigen.

Letztendlich ist das Ziel ebenso komplex wie einfach: erneuerbare Energien und erneuerbarer Kohlenstoff für eine nachhaltige Zukunft. Im Rahmen der RCI wird sich Lenzing insbesondere auf die weitere Ökologisierung der Textil- und Vliesstoffbranchen konzentrieren. Lenzing wird dieses Konzept fördern und ihre Partner ermutigen, Teil dieser Vision zu werden.

Mehr Informationen zur Renewable Carbon Initiative finden Sie unter www.renewable-carbon-initiative.com.

Die Lenzing Gruppe, ein führender Hersteller von holzbasierten Cellulose-Spezialfasern, und die Hochschule Hof haben am Donnerstag, 24. September, ein neues Vliesstoff-Entwicklungs-Zentrum (VEZ) eröffnet. Als strategischer Partner hat Lenzing ab sofort Zugriff auf die hochmoderne Entwicklungsanlage am Campus Münchberg. Für die Hygiene-, Körperpflege- und Medizinbranche ergeben sich damit neue Perspektiven für nachhaltige Faser- und Vliesinnovationen.

Im Sinne der Unternehmensstrategie sCore TEN konzentriert sich die Lenzing Gruppe auf nachhaltige Innovationen, die optimal auf die Bedürfnisse der Wertschöpfungskette abgestimmt sind. „Wir bieten unseren Kunden und Partnern einen entscheidenden Wettbewerbsvorteil: Agilität. Die Versuchsanlage im VEZ ermöglicht es, Faser- und Vliesstoffinnovationen im kleinen Rahmen ressourceneffizient zu entwickeln“, erklärt Jürgen Eizinger, Vice President Business Unit Nonwovens bei Lenzing.

Die Fertigstellung des VEZ erfolgte planmäßig im September 2020, nachdem Lenzing und die Hochschule Hof im Jahr 2019 einen Kooperationsvertrag zur Nutzung dieser unterzeichnet hatten. Das Timing ist perfekt. Denn Entwicklungen auf politischer Ebene, wie die Richtlinie (EU) 2019/904 des Europäischen Parlaments und des Rates vom 5. Juni 2019 über die Verringerung der Auswirkungen bestimmter Kunststoffprodukte auf die Umwelt, steigern den Bedarf an verantwortungsbewusst hergestellten Vliesstoffen. Die sogenannte Einwegplastik-Richtlinie setzt auf Bewusstseinsbildung und gesteigerte Transparenz bei Feuchttüchern und Damenhygieneprodukten.

Mit den holzbasierten Cellulosefasern der Marke VEOCEL™ legt Lenzing schon seit vielen Jahren den Grundstein für nachhaltige Vliesstoffanwendungen und wird nun mit den neu geschaffenen Möglichkeiten am VEZ innovative Ideen erproben und entwickeln. „Wir sehen zunehmendes Interesse an nachhaltigen Konzepten aus biologisch abbaubaren Cellulosefasern“, resümiert Jürgen Eizinger die Marktentwicklung der letzten Monate und ergänzt: „Uns ist bewusst, dass die eingesetzten Fasern enormen Einfluss auf das Endprodukt haben. Deshalb geht unser Engagement auch über die Faserproduktion hinaus.“

Während Lenzing mit der Spunlace-Versuchsanlage im VEZ Kunden und Partner noch intensiver bei der Entwicklung neuer Vliesstoffanwendungen begleiten wird, forciert das Unternehmen auch Kooperationen im Bereich Marketing. Bereits im Vorjahr etablierte das Unternehmen deshalb neue Zertifizierungsstandards für die Marke VEOCEL™. Zertifizierte Hersteller können seither das VEOCEL™ Logo nur bei Mischungen aus biologisch abbaubaren Cellulosefasern verwenden. Mit dieser Maßnahme ermöglicht die Marke VEOCEL™ Konsumenten/innen eine bewusstere Produktwahl.

Mit der Umweltinitiative #ItsInOurHands leistet die Marke VEOCEL™ zudem einen aktiven Beitrag zur Bewusstseinsbildung. Nähere Informationen gibt es unter itsinourhands.com.

• The Lenzing Group was the first Austrian company to send goods 100 percent “Made in Austria” by train directly to China.
• The train loaded with TENCEL™ fibers reached Xinzhu station in Xi'an on September 05.

Xi’an, China – The Lenzing Group is breaking new ground due to the short-term increase in demand for sustainably produced fibers from Chinese customers. For the first time, the company delivered wood-based cellulosic fibers, which are produced at the Austrian sites in Lenzing and Heiligenkreuz, directly to China by train. Thanks to this new transport route, Lenzing is able to meet the urgent demand of its Chinese customers twice as quickly as by the usual sea freight.

The first complete train with goods 100 percent “Made in Austria” started on August 20 in the presence of Leonore Gewessler, Federal Minister for Climate Action, Environment, Energy, Mobility, Innovation and Technology, His Excellency Xiaosi Li, Ambassador of the People's Republic of China in Austria, Stefan Doboczky, Chief Executive Officer of the Lenzing Group, Thomas Kargl, Board Member of the ÖBB Rail Cargo Group, Erwin Cootjans, Chief Executive Officer of Nunner Logistics, and Erich Hampel, Chairman of the Board of the B&C Private Foundation, at the Vienna South Terminal and reached his destination on September 05 at the Xinzhu train station in Xi'an, China. The train loaded with 41 containers with TENCEL™ branded lyocell and modal fibers and a total value of EUR 1.8 mn, passed a total of 10,460 km in seven countries: Austria, the Czech Republic, Poland, Belarus, Russia, Kazakhstan and China.

The first Lenzing fiber train was received in a grand ceremony on Tuesday, September 08 at the container terminal in Xi'an. Numerous guests, including the Austrian ambassador to China, Friedrich Stift, representatives of the Xi'an Municipal Government, the China Railway Xi'an Group, the Xi'an International Trade & Logistics Park as well as representatives of the Lenzing Group, the China National Textile and Apparel Council, Lenzing customers and the media attended the ceremony.

In his speech, Friedrich Stift, Austrian ambassador to China, emphasizes the importance of international trade and sustainable development: “The delivery of Austrian-made products through the CHINA RAILWAY Express adheres to the sustainable concept of Lenzing. Since China and Austria signed the bilateral railway cooperation agreement in 1994, the two countries have maintained good cooperation in the railway field and will continue to do so in the future. China is Austria's largest partner in Asia, and it is believed that after the outbreak of the corona crisis bilateral trade will normalize in 2021.”

“This is the first time for the Lenzing Group to deliver Austrian-made TENCEL™ branded fibers directly to Chinese customers. The Silk Road has been a main transport route between Europe and Asia since ancient times. Chinese consumers affectionately call TENCEL™ fibers ‘Silk from Heaven’. The China-Europe Express can reduce the transport time between Europe and China by half, thus meeting Chinese customer’s demand for environmentally friendly fibers more quickly”, states Hu Jian, Senior Vice President of the Lenzing Group for North Asia.

• Fiber prices and demand under pressure
• Measures to protect employees, customers and suppliers and to keep plants operational implemented successfully
• Joint venture Hygiene Austria established for industrial production of protective masks in the fight against the COVID-19 pandemic – new distribution channel via shop.hygiene-austria.at
• Strategic investment projects progress according to plan – financing agreements for construction of pulp plant in Brazil concluded as planned
• Revenue and operating result in the remaining quarters of 2020 expected to exceed that of the second quarter

Lenzing – In the first half of 2020, the Lenzing Group faced a historically difficult market environment with increased pressure on prices and volumes resulting from the COVID-19 crisis. To counteract that, Lenzing intensified its cooperation with partners along the value chains and adjusted its production volumes and sales prices to market reality. The disciplined implementation of the sCore TEN corporate strategy and the focus on specialty fibers continued to have a positive impact.*

*Please read the attached document for more information

For the third time in a row, the Lenzing Group was awarded gold status in the EcoVadis CSR rating. The assessment is further evidence that the company is one of the top performers in the field of sustainability worldwide.

Lenzing is thus one of the leading two percent of all assessed companies in its industry.
The assessment covers the four most important CSR (Corporate Social Responsibility) practices:

• environment
• fair working conditions and human rights
• ethics and sustainable procurement

“This award makes us very proud and encourages us to continue on our path to becoming a provider of environmentally friendly specialty fibers. At Lenzing, we look beyond fibers and take responsibility for our children and grandchildren by
standing up resolutely against the shortcomings of our time. This attitude is part of our strategic principles and we will continue to work hard to make a sustainable contribution to the environment and society”, says Stefan Doboczky, CEO of the Lenzing Group.

Lenzing’s ambitious climate target represents an important component of the company’s strategy and the responsibility towards future generations. In the 2019 financial year, Lenzing became the world’s first producer of wood-based cellulosic fibers to strategically commit to a climate-neutral production. This vision is to be put into practice by 2050. By 2030, the company aims to achieve an interim goal of reducing emissions by 50 percent per ton of product compared to 2017.

In 2019, Lenzing was once again rated number one in the world in the “Hot Button Report” of the Canadian NGO Canopy, another highly regarded ranking. In this ranking, Canopy grades the world’s 32 largest producers of wood-based fibers with respect to their success in achieving sustainable wood and pulp sourcing.

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

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

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

Center of competence for hygiene established in Wiener Neudorf to support Austria and the EU in the Covid-19 crisis for the industrial production of high-quality protective masks with a monthly capacity of 12 million pieces.

Lenzing AG and Palmers Textil AG found “Hygiene Austria LP GmbH”, in which Lenzing AG holds 50.1% and Palmers Textil AG 49.9%. The newly founded company will start producing and selling protective masks for the domestic and European markets from May 2020.

Over the past few weeks, Lenzing AG and Palmers Textil AG have invested several million euros in a modern production infrastructure at the Wiener Neudorf location and secured the corresponding raw materials for protective masks production. In a first step, the company produces so-called mouth-nose protective masks (MNS) and surgical protective masks of class EN14683. Hygiene Austria LP GmbH plans to increase its capacities to over 25 million masks per month over the next few weeks and to expand this business geographically as well.

The demand for high-quality MNS and respiratory masks for medical personnel is increasing rapidly, and there is real competition on the international market for these products. In order to sustainably secure domestic supply now and in the future and to strengthen the business location, the two companies Lenzing AG and Palmers Textil AG have now set a milestone with their own competence center for hygiene based in Austria.

Hygiene Austria LP GmbH thus makes a significant contribution to combating the Covid-19 pandemic and ensures the long-term supply of these critical goods in Austria in high quality.

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

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

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

“Stand up! A gainst business as usual ”

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

Breakthrough in REFIBRA™ technology

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

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

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

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

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

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