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.

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end of announcement euro adhoc

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

Digital press kit: http://www.ots.at/pressemappe/1597/aom

Rückfragen & Kontakt:

Lenzing AG
Mag. Waltraud Kaserer
Vice President Corporate Communications & Investor Relations
Tel.: +43 (0) 7672 701-2713
mailto: w.kaserer@lenzing.com