‘Excellent’ demand for Lenzing’s specialty fibres
04/08/2021
Austrian fibre group Lenzing has reported a “significant improvement” in revenue and earnings in the first half of the year, which it credits to growing optimism in the textile and apparel industry.
Revenue rose by 27.5% to €1.03 billion, primarily attributable to higher viscose prices, caused by higher demand for fibres, especially in Asia, it said.Lenzing CEO Stefan Doboczky said: “Lenzing had a very strong first half-year. The demand for our sustainably produced specialty fibre once again developed excellently."
Its wood-based specialty fibres such as Tencel, Ecovera and Veocel made up 72.8% of revenues, with a target of making up 75% by 2024, boosted by the new €400 million lyocell plant in Thailand.
Mr Doboczky added: “The largest investment programme in the company’s history is proceeding according to plan and we still expect to start up the new lyocell plant in Thailand in the fourth quarter.
“The cooperation with Södra and our significant investment in the existing locations are the next milestones on our path towards a carbon-free future.”
Lenzing is also investing €200 million in its production sites in Purwakarta (Indonesia) and Nanjing (China) to convert standard viscose capacity into capacity for environmentally responsible specialty fibre.
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