Lenzing AG adds capacity for 35,000 tonnes of specialty fibers

Lenzing AG invests more than EUR 100 million into new production capacity for specialty fibers in Austria

Lenzing AG adds capacity for 35,000 tonnes of specialty fibers

The Lenzing Group is expanding its capacities for specialty fibers.  The focus is on the manufacturing facility in Heiligenkreuz, Burgenland, and the works in Lenzing, Upper Austria.

“We will invest more than EUR 100 million over the next 20 months to expand production capacities for our high-quality botanic fibers, 70 million at the Heiligenkreuz site and 30 million in Lenzing”, says Stefan Doboczky, CEO Lenzing AG. “Given the strong market demand this expansion will help our customers in their growth plans as well as expanding our global market leadership position for specialty fibers.”

As part of its new group strategy sCore TEN, Lenzing set the target of increasing the share of specialty fibers as a proportion of its total revenue to 50 percent by the year 2020. Specialty fibers currently account for 41.7 percent of revenue. The planned capacity expansion of 35,000 tonnes of specialty fibers at the sites in Heiligenkreuz and Lenzing, as well as at the site in Grimsby, Great Britain, is the first step of the announced specialty fiber expansion program of Lenzing AG.

Customers will be able to take advantage of some 10,000 tonnes of specialty fiber capacity already by the end of this year, and 25,000 more by 2018. The major part of investments will be carried out in the years 2016 and 2017.

The Lenzing Group will fully utilize its in house engineering competence, supported by local construction companies and suppliers for these projects. The investment in Heiligenkreuz will create 25 new jobs (full-time equivalents).