New strategy boosts earnings at Lenzing
30/08/2016
The company credited the implementation of a new strategy for this strong performance. It says the decision to shift its focus towards profitable growth based on environmentally-friendly speciality fibres has already had a positive effect on its business.
Higher fibre selling prices helped Lenzing achieve an 8.3% increase in consolidated revenue to €1.03 billion. This came despite largely unchanged production volumes.
Stefan Doboczky, CEO of Lenzing, described the first half of 2016 as “very successful”. He added that the strong performance was aided by an optimisation of the company’s product mix and strong demand for all Lenzing fibres. He predicted that the positive trend would continue for the rest of the year.
Lenzing recently announced plans to invest more than €100 million to expand production capacity for its plant-based Tencel Fibre. The planned expansion would increase capacity to 35,000 tonnes by 2018.
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