Lenzing celebrates revenue rise but predicts challenges in 2018
15/11/2017
Revenue increased 9.4% year-on-year to €1.7 billion, mainly attributable to higher prices for its fibres.
In the third quarter, the company opened an innovation centre in Hong Kong and launched a premium fibre, Tencel Luxe.
Stefan Doboczky, Lenzing’s CEO, said: “In the first three quarters we successfully captured value in a very positive market environment. The opening of our application innovation centre in Hong Kong is an important step to boost our regional innovation capabilities. We were particularly proud to launch Tencel Luxe as a sign of Lenzing’s commitment to innovation and sustainability.”
Lenzing aims to increase the share of specialty fibres as a percentage of revenue to 50% by 2020, is expanding its facilities in Heiligenkreuz (Austria) and Mobile (US) and is constructing a Tencel plant in Thailand.
However, while fibre demand is expected to remain high next year, the group expects substantial price increases for viscose and cotton. Prices for raw materials such as caustic soda are difficult to predict, it says, but it anticipates a “much more challenging market environment for standard viscose during the upcoming quarters”.
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