“No taboos” as Lenzing reviews European production
02/06/2014
Lenzing said on making the announcement that “the very unsatisfactory development of prices on the global market for viscose fibres” was the reason for the the measures. It said the results of its review would be available by the end of 2014.
It said savings of between €60 million and €80 million that it has already achieved as part of a cost-optimisation progamme would no longer be enough to ensure the long-term profitability of cellulose fibre production at its facilities in Europe, such as its main factory at Lenzing in Austria.
In making the new announcement at the end of May, chief executive, Peter Untersperger, said: “In light of the structural changes in competitive conditions, our goal is to lead the Lenzing Group back to its previous competitiveness. Further cost optimisation is an inevitable part, but – within the framework of strategic restructuring – we will also decide which products we can manufacture over the long run at which sites with the highest levels of quality and at optimised costs. There can be no taboos. Everything must be looked at.”
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