Austria-based cellulosic fiber producer Lenzing Group has announced it will invest 120 million euros in 2010 to expand production sites in Europe and Asia. Sites benefiting from the investment include a pulp production plant in Lenzing, Austria; a fiber plant in Heiligenkreuz, Austria; and a Tencel® plant in Grimsby, England.

Capacity will be increased to 260,000 tons per year and an eco-friendly ozone bleaching facility for pulp production will be added to the Lenzing plant. Tencel capacity at Heiligenkreuz will be expanded from 10,000 tons to 60,000 tons per year; and the Grimsby site will be renovated so it can manufacture a special Tencel fiber.

In addition, a previous expansion at its Indonesia-based subsidiary PT South Pacific Viscose (SPV) is set to go live after two years under construction. A fourth production line will add capacity for an additional 60,000 tons per year, taking total annual production at the facility to 220,000 tons. "Already today we expect that demand will exceed Indonesian production capacity," said Friedrich Weninger, head of fiber production and member of the management board. "We will therefore begin with debottlenecking production right after start-up, with the aim to increase SPV production capacity by another 18,000 tons to 238,000 tons per year."

"We are expecting continuing strong demand for Lenzing fibers over the coming years," said Peter Untersperger, chairman of the Lenzing management board. "By these projects, we, as the world market leader, intend to secure and enhance our lead in terms of quantity as well as quality. And the message is clear: The Lenzing Group is going to shape fiber future jointly with its customers."

January 20, 2010