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04.08.2021

Lenzing: Earnings more than doubled in the first half of 2021

  • Strong operating result: EBITDA at EUR 217.8 mn, cash flow from operating activities at EUR 199.8 mn
  • Major strategic projects continue fully on track – production start of the lyocell plant in Thailand in the fourth quarter of 2021
  • Start of strategic cooperation agreement for textile recycling with Södra
  • New milestones in the implementation of group-wide carbon neutrality: EUR 200 mn investment in existing locations in Asia
  • Guidance 2021: Lenzing expects EBITDA of at least EUR 360 mn

The Lenzing Group reported a significant improvement in revenue and earnings in the first half of the year. Growing optimism in the textile and apparel industry and the ongoing recovery in retail caused a substantial increase in demand and prices on the global fiber market, in particular at the beginning of the current financial year.

  • Strong operating result: EBITDA at EUR 217.8 mn, cash flow from operating activities at EUR 199.8 mn
  • Major strategic projects continue fully on track – production start of the lyocell plant in Thailand in the fourth quarter of 2021
  • Start of strategic cooperation agreement for textile recycling with Södra
  • New milestones in the implementation of group-wide carbon neutrality: EUR 200 mn investment in existing locations in Asia
  • Guidance 2021: Lenzing expects EBITDA of at least EUR 360 mn

The Lenzing Group reported a significant improvement in revenue and earnings in the first half of the year. Growing optimism in the textile and apparel industry and the ongoing recovery in retail caused a substantial increase in demand and prices on the global fiber market, in particular at the beginning of the current financial year.

Revenue rose by 27.5 percent to EUR 1.03 bn in the first half of 2021. This increase is primarily attributable to higher viscose prices, which stood at more than RMB 15,000 in May thanks to significantly higher demand for fibers, especially in Asia. The focus on wood-based specialty fibers such as TENCEL™, LENZING™ ECOVERO™ and VEOCEL™ branded fibers also had a positive impact on the revenue development; the share of specialty fibers in fiber revenue rose to 72.8 percent in the reporting period. The negative impact of more unfavorable currency effects was consequently more than offset.

The earnings development essentially reflects the positive market development and was additionally reinforced by measures to improve efficiency. Energy and logistics costs increased significantly throughout the entire reporting period. EBITDA (earnings before interest, tax, depreciation and amortization) more than doubled and amounted to EUR 217.8 mn in the first half of 2021 (compared to EUR 95.6 mn in the first half of 2020). The EBITDA margin rose from 11.8 percent to 21.1 percent. Net profit for the period amounted to EUR 96.1 mn (compared to a net loss of EUR minus 14.4 mn in the first half of 2020) and earnings per share to EUR 3.06 (compared to EUR 0.06 in the first half of 2020).

“Lenzing had a very strong first half-year. The demand for our sustainably produced specialty fibers once again developed excellently,” says Stefan Doboczky, CEO of the Lenzing Group.

Source:

Lenzing AG

22.07.2021

Lenzing awarded platinum status for sustainability by EcoVadis

The Lenzing Group has been awarded Platinum status in EcoVadis’ CSR rating. The assessment comprehensively covers the four main CSR (Corporate Social Responsibility) practices: the environment, fair working conditions and human rights, as well as ethics and sustainable procurement.

In the previous three years, Lenzing had already received outstanding ratings in all categories, and was awarded Gold status in 2018, 2019 and 2020. “We are very proud to have now achieved the step up to the Platinum level after several Gold ratings in the past few years. At Lenzing, we always think beyond fibres and take responsibility for our children and grandchildren – for whom we do our best in order to constantly improve ourselves. This attitude forms part of our strategic principles and we will continue to work hard to make a sustainable contribution to the environment and to society”, notes Stefan Doboczky, CEO of the Lenzing Group.

The Lenzing Group has been awarded Platinum status in EcoVadis’ CSR rating. The assessment comprehensively covers the four main CSR (Corporate Social Responsibility) practices: the environment, fair working conditions and human rights, as well as ethics and sustainable procurement.

In the previous three years, Lenzing had already received outstanding ratings in all categories, and was awarded Gold status in 2018, 2019 and 2020. “We are very proud to have now achieved the step up to the Platinum level after several Gold ratings in the past few years. At Lenzing, we always think beyond fibres and take responsibility for our children and grandchildren – for whom we do our best in order to constantly improve ourselves. This attitude forms part of our strategic principles and we will continue to work hard to make a sustainable contribution to the environment and to society”, notes Stefan Doboczky, CEO of the Lenzing Group.

The Lenzing Group’s ambitious climate targets form an essential part of its strategy and responsibility to future generations. In 2019, Lenzing became one of the world’s first fiber manufacturers to commit to reducing CO2 emissions per ton of product by 50 percent by 2030, and even becoming climate-neutral by 2050. The Science Based Targets Initiative, a recognised organisation in the area of climate-relevant target-setting, has scientifically validated Lenzing’s climate targets.

This scientific validation also forms one of the essential criteria that EcoVadis highlights in its rating. In addition, the responsible procurement of raw materials – according to social and ecological aspects – was also highlighted as a further core element in the company’s sustainability strategy, as well as support for external environmental initiatives (Sustainable Apparel Coalition, Fashion Industry Charter for Climate Action) and initiatives on labour and human rights issues (Sustainable Apparel Coalition).

19.01.2021

Lenzing plans Upper Austria's largest ground-mounted photovoltaic plant

With the industrial use of solar energy, Lenzing sets new standards regarding decarbonization in the fiber industry.

The Lenzing Group plans Upper Austria’s largest ground-mounted photovoltaic plant on an area of around 55,000 m². The groundbreaking ceremony is scheduled to take place in summer 2021. After the expected commissioning in the second half of 2021, the plant's output will amount to 5.5 MWpeak. With approximately 16,000 modules, the plant will generate nearly 5,500 megawatt hours per year. This corresponds to the average annual electricity demand of more than 1,700 households and is unique in Upper Austria on this scale.

The photovoltaic plant is an important symbolic milestone for Lenzing on its way to becoming a CO2-neutral manufacturing site. This project is part of Lenzing’s global energy concept, which aims to provide electricity from 100 percent renewable sources in order to reduce CO2 intensity by 50 percent already in 2030 and to be globally climate neutral in 2050.

With the industrial use of solar energy, Lenzing sets new standards regarding decarbonization in the fiber industry.

The Lenzing Group plans Upper Austria’s largest ground-mounted photovoltaic plant on an area of around 55,000 m². The groundbreaking ceremony is scheduled to take place in summer 2021. After the expected commissioning in the second half of 2021, the plant's output will amount to 5.5 MWpeak. With approximately 16,000 modules, the plant will generate nearly 5,500 megawatt hours per year. This corresponds to the average annual electricity demand of more than 1,700 households and is unique in Upper Austria on this scale.

The photovoltaic plant is an important symbolic milestone for Lenzing on its way to becoming a CO2-neutral manufacturing site. This project is part of Lenzing’s global energy concept, which aims to provide electricity from 100 percent renewable sources in order to reduce CO2 intensity by 50 percent already in 2030 and to be globally climate neutral in 2050.

"The great challenges of our time need answers. As a leading company in innovation and sustainability, we are proactively contributing to the achievement of climate targets and setting new standards for our industry," explains Stefan Doboczky, CEO of the Lenzing Group. “In addition to ongoing major investments in CO2 neutral sites such as Thailand and Brazil, innovative projects at existing sites are bringing us one step closer to climate neutrality.”

Source:

Lenzing AG

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.

20.07.2020

Lenzing once again gold status in the sustainability rating of EcoVadis

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.

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.

 

Lenzing AG
Lenzing AG
20.12.2019

Lenzing leads Canopy ranking for sustainable wood procurement

“Hot Button Report”, the Canadian non-profit organization Canopy particularly highlights the innovative strength of the Lenzing Group, its active contribution to forest conservation and high level of transparency.

In the “Hot Button Report” issued by the Canadian non-profit organization Canopy, the Lenzing Group was once again rated number one in the world, thus confirming its role as the sustainability trailblazer in the textile industry. In this widely recognized 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. Wood and the pulp derived from it are the most important raw materials underlying Lenzing’s sustainable production of cellulosic fibers.

“Hot Button Report”, the Canadian non-profit organization Canopy particularly highlights the innovative strength of the Lenzing Group, its active contribution to forest conservation and high level of transparency.

In the “Hot Button Report” issued by the Canadian non-profit organization Canopy, the Lenzing Group was once again rated number one in the world, thus confirming its role as the sustainability trailblazer in the textile industry. In this widely recognized 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. Wood and the pulp derived from it are the most important raw materials underlying Lenzing’s sustainable production of cellulosic fibers.

“We are extremely proud of this top ranking. It underlines our leading position as a sustainability trailblazer in the manufacturing sector and in the fiber industry in particular. It gives our customers the confidence that we have created the right structures to prevent the sourcing and use of wood from ancient and endangered forests”, says Stefan Doboczky, CEO of the Lenzing Group. “Environmental protection and the prudent use of resources are an integral part of our responsibility to nature and society”, he adds.

Lenzing primarily convinced the non-profit organization Canopy this year thanks to its innovative strength used to promote the circular economy in the textile industry, its active contribution towards protecting the forests and preserving biodiversity as well as its high level of transparency in pulp sourcing.

Lenzing received a total of 26.5 points (up 3.5 points from the previous year) and was thus given the “light to mid green shirt” rating. This means that in using the wood-based cellulosic fibers produced by the Lenzing Group, there is only a very minimal danger that wood is derived from primeval forests and endangered forest areas. In the Wood and Pulp Policy published by Lenzing, the company confirms that it only sources wood and pulp from non-controversial sources.

More information:
Lenzing Lenzing Group Canopy
Source:

Lenzing AG

LENZING™ fibers are fully biodegradable in water, soil and compost (c) Lenzing
30.08.2019

LENZING™ fibers are fully biodegradable in water, soil and compost

  • Organic Waste Systems and TÜV confirm fiber biodegradability also in fresh water
  • All white LENZING™ Viscose, Modal and Lyocell fibers are now certified for all environments
  • Global legislators aim at limiting plastic waste persisting in the environment for centuries
  • EU Single-Use Plastics Directive partly regulates usage of plastic products
  • Biodegradable materials such as wood-based fibers are the best alternative to single-use plastics

The Lenzing Group received confirmation of the full biodegradability of its fibers in fresh water by the independent research laboratory Organic Waste Systems (OWS). The new and existing international certifications conducted by OWS and issued by TÜV Austria verify that LENZING™ Viscose fibers, LENZING™ Modal fibers and LENZING™ Lyocell fibers are biodegradable in all natural and industrial environments: in the soil, compost as well as in fresh and in marine water.

  • Organic Waste Systems and TÜV confirm fiber biodegradability also in fresh water
  • All white LENZING™ Viscose, Modal and Lyocell fibers are now certified for all environments
  • Global legislators aim at limiting plastic waste persisting in the environment for centuries
  • EU Single-Use Plastics Directive partly regulates usage of plastic products
  • Biodegradable materials such as wood-based fibers are the best alternative to single-use plastics

The Lenzing Group received confirmation of the full biodegradability of its fibers in fresh water by the independent research laboratory Organic Waste Systems (OWS). The new and existing international certifications conducted by OWS and issued by TÜV Austria verify that LENZING™ Viscose fibers, LENZING™ Modal fibers and LENZING™ Lyocell fibers are biodegradable in all natural and industrial environments: in the soil, compost as well as in fresh and in marine water.

The biodegradability of cellulosic products and the synthetic fiber polyester was tested in fresh water at OWS according to valid international standards, e.g. ISO 14851. At the end of the trial period, LENZING™ wood-based cellulosic fibers, cotton and paper pulp were shown to be fully biodegradable in fresh water in contrast to synthetic polyester fibers. The fact that synthetic materials are not biodegradable leads to major problems in wastewater treatment plants and potentially marine litter. In turn, this not only harms fish and birds living in and close to the oceans but also all marine organisms and us humans.

“The Lenzing Group operates a truly circular business model based on the renewable raw material wood to produce biodegradable fibers returning to nature after use. This complete cycle comprises the starting point of the core value of sustainability embedded in our company strategy sCore TEN and is the ‘raison d’etre’ of our company”, says Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “In living up to this positioning, we not only enhance the business of our suppliers, customers and partners along the value chain but also improve the state of the entire textile and nonwovens industries.”

Both the textile and nonwovens industries face huge challenges with respect to littering. If current trends continue, the oceans could contain more plastic than fish by 2050. Therefore, legislative bodies worldwide can no longer ignore the issue and have moved towards plastics legislation aimed at limiting the vast amount of waste. In response, European lawmakers issued the Single-Use Plastics Directive currently being transposed into national legislation in the EU member states.

Conventional wet wipes and hygiene products mostly contain plastic and were thus identified as one of the product categories to be singled out. Less polluting alternatives are generally encouraged by NGOs and legislators, e.g. products made of biodegradable wood-based cellulosic fibers. Plastic waste including microplastic can persist in the environment for centuries. In contrast, biodegradable materials are the best alternative to single-use plastics because they fully convert back to nature by definition and thus do not require recycling.

Source:

Corporate Communications & Investor Relations
Lenzing Aktiengesellschaft

@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

13.07.2018

Lenzing continues to raise the bar in sustainability

  • More than EUR 100 mn investment in sustainable production technology until 2022
  • Lenzing is committed to improving the textile and nonwoven industries as a leader in sustainable fiber solutions
  • UN-Sustainable Development Goals as guiding principles for Lenzing’s sustainability agenda
  • All Lenzing sites strive to fulfill the EU Ecolabel standard by 2022

The Lenzing Group, producer of botanic fibers from wood, expands its environmental leadership commitment. As a leader in wood-based cellulosic fibers, Lenzing has particular responsibility and ambition to help raising the bar in sustainability in the textile and nonwovens industries. To fulfill this vision, Lenzing is continuing its ambitious roadmap by investing more than EUR 100 mn in sustainable manufacturing technologies and production facilities until 2022.
 

  • More than EUR 100 mn investment in sustainable production technology until 2022
  • Lenzing is committed to improving the textile and nonwoven industries as a leader in sustainable fiber solutions
  • UN-Sustainable Development Goals as guiding principles for Lenzing’s sustainability agenda
  • All Lenzing sites strive to fulfill the EU Ecolabel standard by 2022

The Lenzing Group, producer of botanic fibers from wood, expands its environmental leadership commitment. As a leader in wood-based cellulosic fibers, Lenzing has particular responsibility and ambition to help raising the bar in sustainability in the textile and nonwovens industries. To fulfill this vision, Lenzing is continuing its ambitious roadmap by investing more than EUR 100 mn in sustainable manufacturing technologies and production facilities until 2022.
 
Lenzing’s circular operating models with closed loop production processes set the standard in the industry. In order to further extend the environmental leadership, a major part of this investment will focus on closed loop production technologies for the expansion of the sulfur recovery systems. The second area of investment will be in improving the effluent treatment units. In addition, Lenzing will upgrade its energy usage to more sustainable solutions reducing its greenhouse gas emissions due to the construction of a gas boiler at its site in China. This investment strengthens Lenzing’s sustainability leadership at its Viscose facility in Nanjing.
 
The investments underline Lenzing’s commitment to the United Nations Sustainable Development Goals (SDG) as guiding principles for its sustainability agenda. One of the most significant SDGs for the company is SDG 12: Responsible production and consumption.
 
Stefan Doboczky, Chief Executive Officer, comments: “The textile and the nonwoven industries face fundamental challenges related to sustainability. Lenzing is passionate to take a leadership role in addressing this and making the world a better place. Our holistic approach to sustainability underpins this scope. The new eco-investment program is a major step forward in our ambitions.”
 
“The United Nations Sustainable Development Goals are a universal call for a sustainable economy that protects the planet and ensures prosperity and well-being for all people”, states Lenzing Chief Commercial
Officer Robert van de Kerkhof. “With our REFIBRA™ technology, Lenzing is innovating to support a more circular, bio-based economy, contributing in particular to SDG 12”, he adds.
 
With the Lenzing Group sustainability targets announced in 2018, Lenzing strives to upgrade all its production sites to the ambitious European Ecolabel standard by 2022. As a result, Lenzing is one of the first companies to commit to a global sustainability-oriented manufacturing standard.

 

More information:
Lenzing Group
Source:

Lenzing AG

Lenzing and Duratex plan to build 450,000 t dissolving wood pulp plant in Brazil
21.06.2018

Lenzing and Duratex plan to build 450,000 t dissolving wood pulp plant in Brazil

  • Lenzing will hold 51 percent in a future joint venture
  • Largest single line dissolving wood pulp plant in the world
  • Basic engineering and permitting process to be kicked off
  • 43,000 hectares FSC® certified plantation secured
  • Final investment decision subject to outcome of basic engineering expected in 2019

Lenzing Group, world market leader in specialty cellulosic fibers and Duratex, the largest producer of industrialized wood panels of the Southern Hemisphere, announce that they agreed on the terms and conditions to form a joint venture to investigate building the largest single line dissolving wood pulp (DWP) plant in the state of Minas Gerais, close to Sao Paulo, Brazil. This decision supports the backward integration and the growth in specialty fibers, defined in Lenzing’s corporate strategy sCore TEN.

  • Lenzing will hold 51 percent in a future joint venture
  • Largest single line dissolving wood pulp plant in the world
  • Basic engineering and permitting process to be kicked off
  • 43,000 hectares FSC® certified plantation secured
  • Final investment decision subject to outcome of basic engineering expected in 2019

Lenzing Group, world market leader in specialty cellulosic fibers and Duratex, the largest producer of industrialized wood panels of the Southern Hemisphere, announce that they agreed on the terms and conditions to form a joint venture to investigate building the largest single line dissolving wood pulp (DWP) plant in the state of Minas Gerais, close to Sao Paulo, Brazil. This decision supports the backward integration and the growth in specialty fibers, defined in Lenzing’s corporate strategy sCore TEN.

The joint venture will investigate the construction of a 450,000 t DWP plant, which is expected to become the largest and most competitive single line DWP plant in the world. Dissolving wood pulp is the key raw material for the production of Lenzing’s bio-based fibers. For the future operation, the two companies have secured a plantation of 43,000 hectares that will provide the FSC® certified biomass. The plantation is fully in line with Lenzing’s wood and pulp sourcing policy. The basic engineering and the application for required permits and merger clearances will now be started.

Lenzing will hold 51 percent of the joint venture which will operate the mill, while Duratex’s share will be 49 percent. The estimated cash investment by the joint venture for the construction of the DWP mill is expected to be somewhat above USD 1 bn (based on current FX rates, net of generic tax refunds and the outcome of the basic engineering study). The joint venture will supply the entire volume of dissolving wood pulp to the Lenzing Group. This step is an essential milestone in the group’s ambition to grow its specialty fibers business.

“Specialty cellulosic fibers are an important contribution to make the global textile industry more sustainable. In line with our corporate strategy sCore TEN we are committed to strong organic growth in this field. We are pleased that with Duratex, a recognized leader in sustainable forestry management, we have a strong partner in this joint venture. Together we will create a very sustainable and competitive raw material base for Lenzing’s global expansion plans”, says Stefan Doboczky, Chief Executive Officer of Lenzing Group.

“Projects of this nature are the result of our strategic plan and of our team’s effort towards drawing Duratex’s future. The Company is known for its financial solidity, high quality, innovation and sustainability; the results of a history spanning over six decades. The partnership with Lenzing for the construction of the largest single line dissolving wood pulp plant in the world is an honor for Duratex. Working with Lenzing, a global benchmark in technology, high quality and corporate governance makes us very proud. We are sure that this joint venture is going to be successful”, affirms Duratex’s Chief Executive Officer Antonio Joaquim de Oliveira.

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.

Lenzing invests in new capacities for TENCEL Luxe (c) Lenzing
23.05.2018

Lenzing invests in new capacities for TENCEL Luxe

  • Market success above expectations
  • Product and market development accelerated
  • Investment up to EUR 30 mn

Lenzing – The Lenzing Group is setting another milestone as a specialist for extremely high-quality products made of the renewable raw material wood. Capacities will be significantly expanded due to strong demand for Lenzing’s TENCELTM Luxe filament yarn which was first launched on the market just a few months ago. Lenzing will invest up to EUR 30 mn in a further pilot line at the Lenzing site. Basic engineering for construction of the new facility has already been initiated.

  • Market success above expectations
  • Product and market development accelerated
  • Investment up to EUR 30 mn

Lenzing – The Lenzing Group is setting another milestone as a specialist for extremely high-quality products made of the renewable raw material wood. Capacities will be significantly expanded due to strong demand for Lenzing’s TENCELTM Luxe filament yarn which was first launched on the market just a few months ago. Lenzing will invest up to EUR 30 mn in a further pilot line at the Lenzing site. Basic engineering for construction of the new facility has already been initiated.

“Thanks to TENCELTM Luxe, Lenzing is currently positioning itself in the premium luxury market and is embedding the issue of sustainability there in combination with superior aesthetics”, says Robert van de Kerkhof, Chief Commercial Officer of the Lenzing Group. “The fine filament yarn is comparable to natural silk due to its airy feeling on the skin and the matte finish. It is perfectly suited for very fine fabrics made exclusively from this yarn and as a blending partner with silk, cashmere and wool”, he adds.

“On the occasion of the launch of TENCELTM Luxe filaments, the luxury brands already realized what opportunities they would have by using this yarn made of the renewable raw material wood. For this reason, demand is already so high that we have decided to take an intermediate step to expand capacities before building a large commercial production plant. The decision to construct a new line will serve as the basis for generating a three-fold increase in capacity compared to the previous volume. The additional capacity will be available to customers at the end of next year”, states Stefan Doboczky, Chief Executive Officer and Chairman of the Management Board of the Lenzing Group. “The Lenzing site was selected because research and technological know-how in plant construction are connected in a special way, which will in turn enable us to further develop this special product”, Doboczky adds.

The new capacities will enable Lenzing to more effectively fulfil the needs of customers for TENCELTM Luxe filament yarn than in the past. At the same time, Lenzing will press ahead with technical planning for a large-scale commercial line at the Lenzing site.

This strong level of demand is further evidence of the Lenzing Group’s innovative strength. The yarn is opening up new markets for the company in the eco-couture segment, thus contributing to the successful implementation of the sCore TEN strategy.