Lenzing to take control of China joint venture
24/10/2018
This stake is currently in the hands of Lenzing’s state-owned joint venture partner NCFC. After closing the transaction, Lenzing will hold 100% of LNF.
The selling process was initiated by the joint venture partner in a state-controlled bidding process. Lenzing has now received the Share Purchase Agreement draft. Closing of the deal is expected by the end of October. It will have a negative impact of €21 million on Lenzing’s net profit for fiscal year 2018.
Explaining the decision, the group said: “The purchase of the shares supports Lenzing’s strategic growth as a producer of specialty fibres from the renewable raw material wood in China and worldwide. It paves the way to setting up further production lines for specialty fibres. Lenzing wants to convert LNF into a specialty fibres hub over time.”
Image: The headquarters of Lenzing Nanjing Fibres (credit: Lenzing).
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