Tariff fears scupper Lenzing’s US expansion plan
27/09/2018
“The rising likelihood of increasing trade tariffs, paired with the potential surge in construction costs due to the buoyant US labour market, have increased the risk profile of this project,” the company said.
As a result of this decision, Lenzing has said it will focus its efforts on readjusting its growth plan in order to meet strong demand for its lyocell fibres. This will include increased focus on its expansion project in Prachinburi, Thailand.
“Lenzing will reassess this decision on a regular basis but no substantial additional lyocell volumes, over and above the successful 25,000 tonnes expansion in Heiligenkreuz (Austria), will be added to the market in 2019 and 2020 by Lenzing,” it added.
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