Lenzing to focus on Tencel and Modal - sportstextiles: Lea SportsTextiles

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Lenzing to focus on Tencel and Modal

22/08/2013
Fibre producer Lenzing Group has said it will concentrate its efforts on the production of Tencel and Modal and reported a record level of core fibre sales in the first half of the year - 438,000 tons.

However, the Austrian group was not immune to the downward price movements of fibres, which led to a decline in sales of 6.8% to EUR 989.9 million.

The market was characterised by ongoing high inventories of cotton and surplus production capacities for viscose fibres in China, the most important sales market, which led to globally declining prices for man-made cellulose fibres.

Lenzing’s CEO Peter Untersperger said: “We initiated a cost optimisation programme at the beginning of the year. In addition, we have adjusted our short- and medium-term strategy to the changed market environment. We will more strongly focus on our specialty fibres, Tencel and Modal, in the future.”

Construction of Lenzing’s large-scale Tencel production plant is under way.

Lenzing’s chief financial officer Thomas Winkler said: “The excelLENZ programme launched at the beginning of 2013 is bearing fruit. We succeeded in generating savings of EUR 16 million in the first half-year.”



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