Austrian specialty fibre group Lenzing to invest €200 mn in Asia

Lenzing Group, the leading global supplier of specialty fibres, will invest over €200 million in its production sites in Indonesia and China to convert existing standard viscose capacity into environmentally responsible specialty fibres. These investments are in line with its target to reduce its GHG emissions per ton of product by 50 per cent by 2030. In Nanjing (China) Lenzing will establish the first wood-based fibre complex in China that is independent from coal as an energy source. By using natural gas based cogeneration, Lenzing will reduce CO2 emissions at the site by more than 200,000 tons. At the same time a line of standard viscose will be converted to a 35.000 tons Tencel branded modal fibres line making Lenzing (Nanjing) Fibers Co Ltd, a 100 per cent wood-based specialty fibre site by the end of 2022. In Purwakarta (Indonesia), Lenzing will reduce its CO2 emissions by increasingly using biogenic fuels. Additional investments to reduce emissions to air and water will make this facility fully compliant with the EU Ecolabel by the end of 2022. That will allow converting standard viscose capacity into Lenzing Ecovero branded fibres for textile applications as well as Lenzing Viscose Eco fibres for personal care and hygiene applications. As a result, the site in Indonesia will also become a pure specialty viscose supplier as of 2023. By avoiding or reducing the use of fossil fuels at the two sites, the Lenzing Group will be able to reduce CO2 emissions by more than 320,000 tons in total, or 18 per cent, compared to 2017. In addition, this investment allows Lenzing also to reduce its total sulphur emissions by more than 50 per cent, compared to 2019. “With our ambitious climate targets towards a zero-carbon future, we are pioneers in the entire manufacturing industry and especially in the fibre sector. Our investments in China and Indonesia underpin that investments in improving our eco-footprint are at the same time value enhancing for shareholders. These investments are a substantial step towards our strategic targets for 2024,” Stefan Doboczky, CEO of the Lenzing Group, said in a press release.  Together with its major lyocell fibre project in Thailand, Lenzing will also boost its share in specialty fibres as a percentage of fibre revenues to well above the targeted 75 per cent already by 2023, which in turn is an important step towards achieving the company’s EBITDA target of €800 mn by 2024.  “We are and will remain a reliable partner for both the textiles and the nonwovens value chain on the long term,” Stephan Sielaff, member of the managing board of Lenzing said. “The strategic focus on specialty fibres is fully in line with the growing market demand for sustainable viscose.”

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