Austria-based man-made cellulose fibre producer the Lenzing Group posted a consolidated sales increase of 14.9% to €533.5 million for the first six months of 2006 compared with €464.4 million for the 2005 period.

Rising interest rates in the dollar zone and an unfavourable exchange rate situation lowered the financial result to minus €6.4 million compared with plus €1.1 million.

The current strong quantity demand mainly concerns the textile fibres business sector. The company was able to expand its business in Asia and the European market situation is also more stable after last year’s turbulent events. Demand for high-quality specialties has continued to rise. It was successful in establishing newly developed fibre applications in the market and positive growth rates were also achieved in the home textile market. Quantity demand in the nonwovens business sector was also good, although price development was unsatisfactory.

Good quantity demand in the fibre business is expected to continue in the coming months.

Demand for textile products, especially in China and Japan, continues to be strong, however, energy and raw material prices will continue to rise. The resulting substantial pressure on margins will have to be compensated by further cost savings and increased efficiency.