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Lenzing: Sustainable geotextiles as glacier protection and jacket (c) UN Nations
22.03.2024

Lenzing: Sustainable geotextiles as glacier protection and jacket

The Lenzing Group has created an innovative concept that contributes to the sustainable protection of our glaciers while inspiring collective action for sustainable practices and a circular economy in the nonwovens and textile value chain. The concept, which was artistically staged by the Italian artist Michelangelo Pistoletto, was presented on March 21, 2024, as part of the International Day of Forests celebrations at the Palais des Nations, the headquarters of the United Nations Office at Geneva (UNOG).

The melting of glaciers is being severely impacted by global warming. Geotextiles are used to protect ice and snow. However, the nonwovens used for this are made of fossil-based fibers, which allow microplastics1 to enter the valley via streams and may enter the food chain through small organisms and animals. Nonwovens made from cellulosic LENZING™ fibers, which are biodegradable at the end of their life cycle and can be completely recycled, are the sustainable solution to this problem.

The Lenzing Group has created an innovative concept that contributes to the sustainable protection of our glaciers while inspiring collective action for sustainable practices and a circular economy in the nonwovens and textile value chain. The concept, which was artistically staged by the Italian artist Michelangelo Pistoletto, was presented on March 21, 2024, as part of the International Day of Forests celebrations at the Palais des Nations, the headquarters of the United Nations Office at Geneva (UNOG).

The melting of glaciers is being severely impacted by global warming. Geotextiles are used to protect ice and snow. However, the nonwovens used for this are made of fossil-based fibers, which allow microplastics1 to enter the valley via streams and may enter the food chain through small organisms and animals. Nonwovens made from cellulosic LENZING™ fibers, which are biodegradable at the end of their life cycle and can be completely recycled, are the sustainable solution to this problem.

The covering of a small area with the new material made from LENZING™ fibers was tested for the first time during a field test on the Stubai Glacier. Four meters of ice were saved from melting. This was confirmed in a study conducted by the University of Innsbruck and the Austrian glacier lift operators on the Stubai Glacier in Tyrol (Austria). In 2023, the pilot project was successfully extended to all Austrian glaciers used by tourists.

Last year, the project was also awarded first place in the prestigious Swiss BIO TOP Awards for wood and material innovations.

Lenzing takes this innovation project as an opportunity to inspire collaborative action towards sustainable practices and circularity in the textile value chain. Together with a network of innovative partners, Lenzing is working on processing geotextiles into new textile fibers giving them a second life as a garment. The use of geotextiles is usually limited to two years, after which the nonwovens would be disposed of. In the first phase of the pilot project, the recycling of nonwovens made for geotextiles use has been successfully tested and a fashionable “Glacier Jacket” has been produced, showcasing that the recycling of geotextiles is viable. Next to Lenzing, the network includes Marchi & Fildi Spa, a specialist in the field of mechanical recycling, the denim fabric manufacturer Candiani Denim and the fashion studio Blue of a Kind.

Photo: Messe Frankfurt
08.11.2021

Techtextil India: Hybrid exhibition in November

India’s leading trade fair in technical textiles, nonwovens and composites, Techtextil India, is ready to make a comeback through its hybrid edition launch from 25 – 27 November 2021. With a series of live product demonstrations, insightful knowledge sessions and B2B networking opportunities, the multimodal trade fair will provide a strong avenue for technical textile professionals to reimagine their business potential.
 
After a successful grand edition in 2019, Techtexil India is all set to return for the very first time since the pandemic. The three-day exhibition will be hosted in a hybrid format from 25 – 27 November 2021, Bombay Exhibition Centre, Goregaon which will unite technical textile players from across its varied application areas. Top technical textile brands including JB Ecotex, PARK Nonwoven, Loyal Textiles Lenzing, Mehala, Meera Industries, amongst many others will showcase their latest products at the hybrid fair. Moreover, leading German brands exhibiting at Techtextil India 2021 will be hosted under the German pavilion.

India’s leading trade fair in technical textiles, nonwovens and composites, Techtextil India, is ready to make a comeback through its hybrid edition launch from 25 – 27 November 2021. With a series of live product demonstrations, insightful knowledge sessions and B2B networking opportunities, the multimodal trade fair will provide a strong avenue for technical textile professionals to reimagine their business potential.
 
After a successful grand edition in 2019, Techtexil India is all set to return for the very first time since the pandemic. The three-day exhibition will be hosted in a hybrid format from 25 – 27 November 2021, Bombay Exhibition Centre, Goregaon which will unite technical textile players from across its varied application areas. Top technical textile brands including JB Ecotex, PARK Nonwoven, Loyal Textiles Lenzing, Mehala, Meera Industries, amongst many others will showcase their latest products at the hybrid fair. Moreover, leading German brands exhibiting at Techtextil India 2021 will be hosted under the German pavilion.

The conjunction between the physical exhibition and the online business matchmaking platform will make way to a wider range of networking. Local and international visitors who are unable to attend the venue will be able to witness the exhibition virtually through the ‘MFI virtual app’ which will host live knowledge sessions and product demonstrations for visitors. The two-day multimodal trade fair allows the visitors to search for specific products like fibers, yarns, nonwovens, machinery, coated textiles with easy-to-use filters further to which they can share their query or connect directly with the respective exhibitors.

At the same time, visitors attending the venue will be welcomed under a well-organised physical exhibition following the government-authorised safety protocols of ‘MFI SafeConnect’. These protocols will enable visitors to engage in secure face-to-face interactions with exhibitors and witness the latest technical textile technologies and innovations in-person.

Alliance with the Government of Tamil Nadu
In a bid to strengthen indigenous production through the state and attract investors, the nodal agency for investment promotion and facilitation for the Government of Tamil Nadu – Guidance has signed up for Techtextil India 2021. Furthermore, technical textile players from Tamil Nadu such as Cyber Textiles India Pvt Ltd, Jayashree Spun Bond, Lenzing Ag India, Liester Technologies, Loyal Textile Mills Ltd, Milltex Engineers Pvt Ltd, Superfil Products Pvt Ltd, Uster Technologies (India) Pvt Ltd have also confirmed their participation for the exhibition.
Announcing a close co-operation with Messe Frankfurt India for the 2021 edition, Ms Pooja Kulkarni, IAS MD & CEO, Guidance Tamil Nadu, stated: “While there are several inherent advantages for the growth of technical textiles in Tamil Nadu specifically, many raw materials used in the production of sanitary products, artificial ligaments, seat belt webbings, airbags are still heavily imported. In this context, the alliance with Techtextil India Forum can help us reduce import dependency and bring investments in R&D, manufacturing, innovation by partnering with global technical textiles companies.”

With 50% of India’s textile mills in Tamil Nadu and complementary clusters of knitting, weaving and medical devices manufacturing in Coimbatore, and Tiruppur, the region provides immense opportunities for Meditech investments. Two petrochemical and refinery units – One in Cuddalore and another in Nagapattinam by CPCL is in the process of being established in Tamil Nadu. These units will enable availability of MMF raw material for the textile industry across the state. Hence, manufacturing in Tamil Nadu can be a win-win arrangement for investors as India provides access to the burgeoning market as well.

International expertise with German pavilion
Techtexil India 2021 edition will feature an exclusive German Pavilion showcasing products and technologies from top German manufacturers, including Autefa Solution Germany GmbH, DILO Systems GmbH, Emtec Electronic GmbH, Georg Sahm GmbH & Co, Karl Mayer Verwaltungsgesellschaft mbH, Merz Maschinenfabrik GmbH and Oerlikon Barmag Zweigniederlassung der Oerlikon Textile GmbH & Co.

Source:

Messe Frankfurt (HK) Ltd

24.04.2020

Lenzing AG and Palmers Textil AG found Hygiene Austria LP GmbH

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.

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.

Source:

Lenzing AG

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

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

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

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

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

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

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

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

Improved exhaust emission performance

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

Improved CO2 scorecard

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

More information:
Lenzing Group Nachhaltigkeit Fasern
Source:

Lenzing AG

12.09.2019

Lenzing contracts Wood to deliver world´s largest lyocell plant

partner confirms start-up date of the project in Thailand

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

partner confirms start-up date of the project in Thailand

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

More information:
Lenzing AG
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Lenzing AG

Lenzing AG and Partners Win Austrian State Prize 2018 for Smart Packaging (c) BMDW/Silveri
(from left to right) Head of the Department DDr. Reinhard Mang, Tanja Dietrich-Huebner (Rewe), Susanne Meininger (Verpackungszentrum), Marina Crnoja-Cosic (Lenzing AG), Malte Stackebrandt (Coop), General Secretary Dipl-Ing. Esterl.
23.11.2018

Lenzing AG and Partners Win Austrian State Prize 2018 for Smart Packaging

  • The Packnatur® reusable cellulose bag wins State Prize in the B2C category
  • Bags are made from wood-based fibers of Lenzing AG, which are biodegradeable
  • Bags were developed together with VPZ Verpackungszentrum GmbH and are utilized by Coop and REWE for fruits and vegetables


Lenzing/ Vienna – Lenzing AG was granted the Austrian State Prize 2018 for Smart Packaging this year together with its partners. The Federal Ministry of Digital and Economic Affairs and the Federal Ministry of Sustainability and Tourism bestowed the Austrian State Prize this week in the B2C category on the Packnatur® reusable wood-based bag. This reusable bag is made with fibers produced by Lenzing AG and was developed by Lenzing and its partner VPZ Verpackungszentrum GmbH. The bags are utilized in the supermarkets of the Swiss food retailer Coop and the Austrian firm REWE International AG.

  • The Packnatur® reusable cellulose bag wins State Prize in the B2C category
  • Bags are made from wood-based fibers of Lenzing AG, which are biodegradeable
  • Bags were developed together with VPZ Verpackungszentrum GmbH and are utilized by Coop and REWE for fruits and vegetables


Lenzing/ Vienna – Lenzing AG was granted the Austrian State Prize 2018 for Smart Packaging this year together with its partners. The Federal Ministry of Digital and Economic Affairs and the Federal Ministry of Sustainability and Tourism bestowed the Austrian State Prize this week in the B2C category on the Packnatur® reusable wood-based bag. This reusable bag is made with fibers produced by Lenzing AG and was developed by Lenzing and its partner VPZ Verpackungszentrum GmbH. The bags are utilized in the supermarkets of the Swiss food retailer Coop and the Austrian firm REWE International AG.

The Packnatur® reusable cellulose bag is particularly suited for the packaging of fruit and vegetables and serves as an ideal replacement for plastic bags. The jury provided the following reasons to justify the selection of the winner: The Packnatur® reusable cellulose bag comprises a long-lasting, reusable packaging solution made of a renewable raw material but not at the expense of food. It has very pleasant haptics and supports longer shelf life of food.

LENZING™ fibers are made from the natural and renewable raw material wood. For this reason, they are biodegradable. Moreover, they pollute neither rivers nor seas with microparticles washed out in the process of washing.

The Austrian State Prize for Smart Packaging was granted on the occasion of the 3rd Austrian Packaging Day. This year for the 58th time, the objective of this award is to highlight modern packaging solutions and excellent projects as best practice examples and thus put the national packaging industry in the international limelight.

14.03.2018

Lenzing Group achieves best full-year results in its history

  • Revenue increased by 5.9 percent to EUR 2.26 bn
  • EBITDA up 17.3 percent to EUR 502.5 mn
  • Dividend proposal of EUR 3.00/share plus a special dividend of EUR 2.00/share
  • New brand strategy to generate a strong message to consumers
  • Limited visibility for coming quarters

In 2017, the Lenzing Group reports its best financial performance ever with record revenue and earnings due to a better product mix and higher selling prices in combination with a generally favorable market environment.

  • Revenue increased by 5.9 percent to EUR 2.26 bn
  • EBITDA up 17.3 percent to EUR 502.5 mn
  • Dividend proposal of EUR 3.00/share plus a special dividend of EUR 2.00/share
  • New brand strategy to generate a strong message to consumers
  • Limited visibility for coming quarters

In 2017, the Lenzing Group reports its best financial performance ever with record revenue and earnings due to a better product mix and higher selling prices in combination with a generally favorable market environment.

Group revenue grew by 5.9 percent in the 2017 financial year to EUR 2.26 bn (2016: EUR 2.13 bn). Group earnings before interest, tax, depreciation and amortization (EBITDA) improved by 17.3 percent to EUR 502.5 mn (2016: EUR 428.3 mn). The corresponding EBITDA margin rose to 22.2 percent (2016: 20.1 percent). Earnings before interest and tax (EBIT) increased by 25.2 percent to EUR 371 mn, resulting in a higher EBIT margin of 16.4 percent (2016: 13.9 percent). The net profit for the year totaled EUR 281.7 mn, a rise of 23 percent from the prior-year figure of EUR 229.1 mn. Earnings per share in the 2017 financial year amounted to EUR 10.47 (2016: EUR 8.48).

The Management Board and the Supervisory Board will propose at the upcoming Annual General Meeting a stable dividend of EUR 3.00 per share plus an increased special dividend of EUR 2.00 per share (2016: EUR 1.20 per share). In total, the dividend will amount to EUR 5.00 per share, corresponding to a dividend payment to shareholders of EUR 132.75 mn.

“The Lenzing Group looks back at a very successful year 2017. We continued to implement our corporate strategy sCore TEN with great discipline and focus on our investment projects and successfully captured value in a positive market environment. Our commitment to innovation and customer centricity was underpinned by the opening of an application innovation center in Hong Kong and the creation of the new sales and marketing office in Turkey. In line with sCore TEN we decided to revamp our brand architecture and image to sharpen Lenzing’s corporate and product profiles for customers and consumers. We want to put a stronger emphasis on our ambition to make the textile and nonwoven market more sustainable”, says Stefan Doboczky, Chief Executive Officer of the Lenzing Group.

“We are very positive about our chosen strategy as it will help us to be more resilient as we expect more headwinds in the upcoming quarters”, he adds.

More information:
Lenzing Group
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Lenzing AG

14.03.2018

Lenzing Gruppe mit bestem Geschäftsjahr der Unternehmensgeschichte

  • Umsatz stieg um 5,9 Prozent auf EUR 2,26 Mrd.
  • EBITDA legte um 17,3 Prozent auf EUR 502,5 Mio. zu
  • Dividendenvorschlag von EUR 3,00 plus EUR 2,00 Sonderdividende pro Aktie
  • Starke Botschaft an Verbraucher durch neue Markenstrategie
  • Eingeschränkte Visibilität für die kommenden Quartale

Die Lenzing Gruppe erzielte 2017 neue Rekordstände bei Umsatz und Gewinn und verzeichnete damit das beste Geschäftsjahr in der Unternehmensgeschichte. Maßgeblich dafür waren ein besserer Produktmix und höhere Faserverkaufspreise in Kombination mit einem allgemein günstigen Marktumfeld.

Die Konzern-Umsatzerlöse stiegen im Geschäftsjahr 2017 um 5,9 Prozent auf EUR 2,26 Mrd. (2016: EUR 2,13 Mrd.). Das EBITDA verbesserte sich um 17,3 Prozent auf EUR 502,5 Mio. (2016: 428,3 Mio.).

  • Umsatz stieg um 5,9 Prozent auf EUR 2,26 Mrd.
  • EBITDA legte um 17,3 Prozent auf EUR 502,5 Mio. zu
  • Dividendenvorschlag von EUR 3,00 plus EUR 2,00 Sonderdividende pro Aktie
  • Starke Botschaft an Verbraucher durch neue Markenstrategie
  • Eingeschränkte Visibilität für die kommenden Quartale

Die Lenzing Gruppe erzielte 2017 neue Rekordstände bei Umsatz und Gewinn und verzeichnete damit das beste Geschäftsjahr in der Unternehmensgeschichte. Maßgeblich dafür waren ein besserer Produktmix und höhere Faserverkaufspreise in Kombination mit einem allgemein günstigen Marktumfeld.

Die Konzern-Umsatzerlöse stiegen im Geschäftsjahr 2017 um 5,9 Prozent auf EUR 2,26 Mrd. (2016: EUR 2,13 Mrd.). Das EBITDA verbesserte sich um 17,3 Prozent auf EUR 502,5 Mio. (2016: 428,3 Mio.).
Die EBITDA-Marge stieg von 20,1 Prozent im Geschäftsjahr 2017 auf 22,2 Prozent der Umsatzerlöse im Berichtsjahr. Das Betriebsergebnis (EBIT) erhöhte sich um 25,2 Prozent auf EUR 371 Mio., was zu einer höheren EBIT-Marge von 16,4 Prozent (2016: 13,9 Prozent) führte.
Der Jahresüberschuss lag mit EUR 281,7 Mio. um 23 Prozent über dem Vorjahreswert von EUR 229,1 Mio. Das Ergebnis je Aktie belief sich auf EUR 10,47 (2016: EUR 8,48).

Vorstand und Aufsichtsrat schlagen der Hauptversammlung die Zahlung einer stabilen Dividende von EUR 3,00 je Aktie plus einer erhöhten Sonderdividende von EUR 2,00 je Aktie (2016: EUR 1,20 je Aktie) vor. In Summe soll die Dividende EUR 5,00 je Aktie betragen. Das entspricht einer Ausschüttung an die Aktionäre von EUR 132,75 Mio.

„Die Lenzing Gruppe blickt auf ein sehr erfolgreiches Jahr 2017 zurück. Wir haben unsere Unternehmensstrategie sCore TEN weiter mit großer Disziplin und Fokus auf unsere Investitionsmaßnahmen vorangetrieben und unsere wertorientierte Unternehmensentwicklung in einem positiven Marktumfeld weiter verfolgen können. Mit der Eröffnung eines Applikations- und Innovationscenters in Hongkong sowie eines neuen Vertriebs- und Marketingbüros in der Türkei haben wir unser Bekenntnis zu Innovation und Kundennähe untermauert. Im Sinne von sCore TEN haben wir entschieden, das Unternehmens- und Produktprofil der Lenzing Gruppe für Kunden und Konsumenten zu schärfen. Wir wollen unser Anliegen, die Textil- und Vliesstoff-Branche nachhaltiger zu machen, stärker betonen“, sagt Stefan Doboczky, Vorstandsvorsitzender der Lenzing Gruppe.

„Wir sind von unserer gewählten Strategie überzeugt, da sie uns in den kommenden Quartalen, in denen wir stärkeren Gegenwind erwarten, helfen wird, widerstandsfähiger zu sein“, so Doboczky.

More information:
Lenzing Gruppe
Source:

Lenzing AG

Lenzing Group Lenzing AG
Lenzing Group
23.08.2017

Lenzing Group achieves best half-year results in its history

  • Revenue up 11 percent to EUR 1,149.1 mn
  • EBITDA increase of 38.8 percent to EUR 270.7 mn
  • Detailed planning for new production plant for TENCEL® fibers in Thailand in Progress
  • New sales offices opened in Turkey and Korea
  • New EcoVeroTM branded viscose fibers with very favorable ecological footprint launched

The Lenzing Group generated new record highs in the first half of the 2017 financial year for both revenue and earnings. The key underlying factors were good capacity utilization, higher selling prices and an attractive product mix. Lenzing will continue to focus on the disciplined implementation of the Group strategy sCore TEN, in order to be even closer to the customer and to further expand the offering of specialty fibers.

  • Revenue up 11 percent to EUR 1,149.1 mn
  • EBITDA increase of 38.8 percent to EUR 270.7 mn
  • Detailed planning for new production plant for TENCEL® fibers in Thailand in Progress
  • New sales offices opened in Turkey and Korea
  • New EcoVeroTM branded viscose fibers with very favorable ecological footprint launched

The Lenzing Group generated new record highs in the first half of the 2017 financial year for both revenue and earnings. The key underlying factors were good capacity utilization, higher selling prices and an attractive product mix. Lenzing will continue to focus on the disciplined implementation of the Group strategy sCore TEN, in order to be even closer to the customer and to further expand the offering of specialty fibers.

Consolidated revenue increased by 11 percent from the first half of the previous financial year to EUR 1,149.1 mn. Consolidated earnings before interest, tax, depreciation and amortization (EBITDA) were up 38.8 percent to EUR 270.7 mn, corresponding to an EBITDA margin of 23.6 percent in comparison to 18.9 percent in the prior-year period. Earnings before interest and tax (EBIT) increased by 57.4 percent to EUR 204.2 mn, resulting in a higher EBIT margin of 17.8 percent (H1 2016: 12.5 percent). The profit for the period improved by 58.9 percent to EUR 150.3 mn, and earnings per share climbed 59 percent to EUR 5.55 per share.

“The first half-year developed very well for the Lenzing Group, and we are pleased with the best half-year period in the company’s history. We will continue our disciplined implementation of the sCore TEN strategy. The expansion of new state-of-the-art production capacities for our specialty fibers is proceeding well and will support our customers in their own expansion efforts for products made of our botanic fibers. The decision to set up a subsidiary and acquire a respective landplot in Thailand is the next step in the implementation of this strategy. On the innovation side we are proud that after the introduction of RefibraTM branded lyocell fibers, we launched now EcoVeroTM. This is a particularly high-performance fiber featuring a very favorable ecological footprint and sets the new benchmark for the entire industry – from fiber to garment”, states Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “Assuming that fiber market conditions remain at current levels, we expect a substantial earnings improvement in 2017 compared to 2016.”

Outlook
The wood-based cellulose fiber segment, which is relevant for Lenzing, should again outpace the overall fiber market. The demand for these cellulose fibers was very good in the first half year of 2017, with the long-term trend pointing towards further growth in viscose and, above all, wood-based cellulose specialty fibers. On the supply side, the market is not expected to see the entry of any notable new production capacity in 2017.
The Lenzing Group had an excellent first half year 2017 and registered strong demand for its fibers during the first two quarters which, in turn, led to continued very high capacity utilization in all product groups. The market price index for viscose fibers was substantially higher than in the comparable prior year period. Under the assumption of unchanged conditions in the fiber market and stable exchange rates, Lenzing expects a considerable improvement in results in the fiscal year 2017 compared to 2016.
 
 
More information:
Lenzing Group Fibers
Source:

Lenzing AG