EANS-News: Lenzing AG / Lenzing Group builds world’s largest lyocell fiber plant in Thailand

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Strategic Management Decisions

Highlights -

* Lenzing plans to invest more than EUR 1 bn in new lyocell fiber production
facilities
* First expansion phase with 100,000 tons approved in Thailand
* State-of-the-art production plant enhances global specialty fibers footprint
* Accelerates business growth with TENCEL(TM) branded fibers
* Biogenic energy supply fosters low CO2 emissions and climate protection

Lenzing - The Lenzing Group is substantial increasing its production of lyocell
fibers to meet the strong demand for these products and further strengthening
its position as an industry leader in specialty fibers. Over the next years, it
plans to invest more than EUR 1 bn in new production facilities for lyocell
fibers. The first expansion phase of this ambitious growth plan, the
construction of a state-of-the art lyocell fiber production plant in Prachinburi
(Thailand), has now been approved. The plant will have a capacity of 100,000
tons and feature investments of approximately EUR 400 mn.

The plant sets a new milestone in the history of lyocell fibers and will be the
largest site of its kind. Site grading at Industrial Park 304 around 150
kilometers east of Bangkok has been completed successfully and the investment is
fully supported by the Board of Investment (BOI) of Thailand. Construction will
start this fall and production will commence towards the end of 2021.

"TENCEL(TM) lyocell fibers are considered a benchmark in ecologically
responsible fibers. This expansion underscores Lenzing's commitment to improve
the ecological footprint of the global textile industry", says Stefan Doboczky,
Chief Executive Officer of the Lenzing Group. "This investment in Thailand
represents the next consistent step in the implementation of our sCore TEN
strategy and will help to further transform Lenzing into a specialty fibers
company", Doboczky adds.

Thailand has favorable trade agreements with the major Asian economic blocks.
The selection of Industrial Park 304 in Prachinburi was based on its excellent
overall infrastructure and the sustainable biogenic energy supply, which leads
to low CO2 emissions to protect the climate. Over the coming years Lenzing will
further expand at the site in Thailand, which has space for several plants. The
investment in the first phase already includes the general infrastructure that
will benefit future expansion. Lenzing will continue to look for potentially
expanding lyocell production in other parts of the world as well.

"The project has received very good attention in the engineering market. Lenzing
aims at implementing the project in a strategic partnership with an
international engineering company also chosen for its capability to support
Lenzing's further organic growth worldwide. Integrated teams including an
international and highly skilled Lenzing workforce will work together with the
engineering contractor, which will be selected soon. Commissioning of the plant
and start of production will take place in the second half of 2021", says Heiko
Arnold, Chief Technology Officer of the Lenzing Group.

Photo download:
https://mediadb.lenzing.com/pinaccess/showpin.do?pinCode=vKJibye9yuYf [https://
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Further inquiry note:
Lenzing AG
Mag. Waltraud Kaserer
Vice President Corporate Communications & Investor Relations
Tel.: +43 (0) 7672 701-2713
mailto: w.kaserer@lenzing.com

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: office@lenzing.com
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 | CNE

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