Increase in wood-based fibre demand eases pain for Lenzing
Speciality fibres group Lenzing has reported revenues of just under €1.2 billion for the first nine months of 2020. This figure represents a decline of 26.1% compared to the same period last year.
It said it had responded successfully to “the extremely difficult market environment of increased pressure on prices and volume” imposed by the covid-19 crisis. Its response included “intensifying co-operation” with partners along the value chain and being “agile and flexible” in adjusting production volumes to demand, reducing operating costs.
It said covid-19 had quickly “increased the pressure” on prices and volumes in the textile fibre segment and that this had been particularly intense in the second quarter. It also said there had been an increase in demand for wood-based specialty fibres such as Tencel towards the end of the third quarter and that this had had a positive impact on revenues.
On announcing the result, chief executive, Stefan Doboczky, said: “Lenzing reacted quickly and, consequently, held its ground in this extremely difficult market environment. In the third quarter, we saw a broad recovery of the fibre market. In particular, demand for our sustainably produced specialty fibres increased significantly. We remain fully on track, despite the pandemic, and the implementation of our key projects in Thailand and Brazil is progressing as planned.”
