The Lenzing Group’s expansion plans and new fiber product launches is paying off for the 79-year-old Austrian company as the firm’s leadership said it’s on track to see stronger profits this year compared to 2016. Last year, total revenue grew to $2.43 billion as the company brought to market 1.1 million tons of fiber.
Lenzing has positioned itself as a leader in sustainable fiber. Its product offerings range from dissolving wood pulp to standard and specialty cellulose fibers. The firm produces high volumes of three cellulose fiber generations, which include Lenzing Viscose, Lenzing Modal and Tencel lyocell fibers. Lenzing’s commitment to sustainable production saw the launch of Refibra lyocell fibers earlier this year, which is made of recycled cotton scraps.
Its proprietary fibers Tencel, Refibra, Lenzing Modal and Lenzing Viscose are trademarks of Lenzing AG and are used in products across the market.
Stefan Doboczky, chief executive officer of The Lenzing Group, said the “opening of new sales offices in Turkey and South Korea enables us to serve our customers more effectively. We are progressing well with the expansion of our production capacities for specialty fibers. This will support our customers in their own expansion efforts by providing products made of our botanic fibers.”
“Assuming that fiber market conditions remain at current levels, we expect a substantial earnings improvement this year compared to 2016,” Doboczky added.
Tricia Carey, the global director of business development for Lenzing Fibers, told WWD that “Lenzing continues to innovate with fiber developments supporting the sustainability strategies of brands and retailers. In February, we launched Refibra using post-industrial consumer cotton scraps for pulp, which is produced on the lyocell process with closed loop. The entire supply chain needs to address the issue of mounting textile waste and how we can incorporate circular economy processes into our production and designs.”
Carey added that “[Lenzing has] a solution dyed Lenzing Modal Black and Colors, which reduce water and chemical usage. By adding the color before extruding the fiber, there are benefits to the environment while keeping the softness. To the consumer this means lasting color in their garments and black jeans which will not fade to gray.”
This year, Lenzing released its “Naturally Positive” sustainability report, which connected global brands, stakeholders and NGOs to collaborate on industry-wide sustainability initiatives, according to the firm. Lenzing also saw the arrival of its EcoVero viscose in May, which enables the identification of fibers at yarn, fabric or garment stages and enhances transparency for brand and retailer sourcing.
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