EANS-Adhoc: Lenzing AG / Lenzing and Duratex plan to build 450,000 t dissolving wood pulp plant in Brazil

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Disclosed inside information pursuant to article 17 Market Abuse Regulation
(MAR) transmitted by euro adhoc with the aim of a Europe-wide distribution.
The issuer is responsible for the content of this announcement.
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Joint Ventures/Cooperation/Collaboration
21.06.2018

Highlights -

* 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 - 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.

Photo download:
https://mediadb.lenzing.com/pinaccess/showpin.do?pinCode=yNJBlUoHFLCi [https://
mediadb.lenzing.com/pinaccess/showpin.do?pinCode=yNJBlUoHFLCi]
PIN: yNJBlUoHFLCi

Further inquiry note:
Lenzing AG
Mag. Waltraud Kaserer
Vice President Corporate Communications & Investor Relations
Tel.: +43 (0) 7672 701-2713
mailto: [email protected]

end of announcement euro adhoc
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issuer: Lenzing AG

A-A-4860 Lenzing
phone: +43 7672-701-0
FAX: +43 7672-96301
mail: [email protected]
WWW: http://www.lenzing.com
ISIN: AT0000644505
indexes: WBI, ATX
stockmarkets: Wien
language: English

ORIGINAL APA-OTS TEXT - THE INFORMATION CONTAINED IN THIS PRESS RELEASE IS SUBJECT TO THE EXCLUSIVE RESPONSIBILITY OF THE ISSUER | EAE

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