Lenzing to expand in Austria and China

30/03/2010

Austria-based cellulose fibres expert Lenzing says it increase capacity at its sites in Lenzing, Austria, and Nanjing, China.

Production capacity at the Nanjing will more than double to 140,000 tonnes per year with an investment of EUR 55 million and a scheduled construction period of 18 months to two years.

The Lenzing site will switch production from standard viscose fibres to modal fibres within the next fifteen months at an investment of EUR 23 million.

Peter Untersperger, chairman of the Lenzing management board, said: “The investment is a continuation of our consistent expansion policy. The value of the Lenzing site as the world's biggest producer of special cellulose fibres will grow, and doubled capacity at the Nanjing site will meet the fast-growing demand for standard cellulose fibres in Asia.

The new programme complements the current fibre capacity expansion programme launched in December, which involves a total investment of EUR 120 million.
Friedrich Weninger, the board member responsible for the fibre business, said: “Modal has very much turned out to be a global export success over the past years, particularly in Asia. The project will develop and secure our special fibre strategy for the Lenzing site. Integrated pulp production there enables optimised and decisive control of the production quality parameters from beech to fibre required for special fibres and the site's expertise in modal production spans decades. Moreover, remodelling will be comparatively fast and cost-efficient.”