The Lenzing Group will expand and modernize its dissolving wood-pulp production facilities at its sites in Lenzing, Austria, and Paskov, Czech Republic, investing more than $100 million in the process.
At a press meeting in Vienna on Tuesday, Lenzing chief executive officer Stefan Doboczky revealed a total investment program of 100 million euros, or about $110.6 million, with 60 percent to be spent in Lenzing and 40 percent in Paskov.
Additional new capacities of around 35,000 tons will be added over the next two-and-a-half years.
“With these investments, we are taking another step in the implementation of our new corporate strategy, sCore TEN,” said Doboczky. “We aim to increase our own dissolving wood-pulp production from currently 56 percent to 75 percent of the group’s requirements for the production of botanic cellulose fibers by the end of the decade. The modernization will lead to more efficiency of our plants. The upgrade and expansion of our bio-refinery setup will underline Lenzing’s leadership as the most sustainable fiber producer.”
Lenzing’s bio-refinery concept is based on using only certified wood from countries in Western and Central Europe. It is an essential part of Lenzing’s mission to turn carbon dioxide and sunlight into high-value fibers, as it ensures that 100 percent of the wood components are used to produce fibers, bio-chemicals and bio-energy. This investment is also a part of Lenzing’s quality strategy, as the quality of its botanic fibers depends on the quality of the dissolving wood pulp.
In August, Lenzing unveiled a capacity expansion for specialty fibers of 35,000 tons by mid-2018. Roughly 70 million euros, or $77.5 million, will be invested in the site in Heiligenkreuz, Austria, and about 30 million euros, or $33.2 million, in Lenzing as part of this project. The new pulp investment program will be implemented in addition to these investments and are part of another long-term commitment of the Lenzing Group to the Austrian production sites.
The Lenzing group is headquartered in Austria, with production sites in all major markets as well as a global network of sales and marketing offices. Lenzing supplies the textile and nonwovens industry with botanic cellulose fibers, including Tencel, modal and viscose.
In 2015, the group had revenues of 1.98 billion euros, with fiber sales volume of 965,000 tons.