Lenzing briefly suspends lyocell expansion project in US

27 Sep '18

2 min read

Courtesy: Lenzing

Lenzing’s Managing Board has decided to temporarily mothball the lyocell expansion project in Mobile, Alabama, US. The Lenzing Group is a leading, international company that produces high-quality fibres and filaments from the renewable raw material wood with environmentally friendly and innovative technologies. The company is headquartered in Austria.

The rising likelihood of increasing trade tariffs, paired with the potential surge in construction costs due to the buoyant US labour market, have increased the risk profile of this project, the company said in a media statement.

Consequently, Lenzing will put all its effort to readjust the execution of its growth plan to meet strong market demand of its lyocell fibres. This includes an increased focus on the lyocell expansion project in Prachinburi, Thailand. Lenzing will reassess this decision on a regular basis, but no substantial additional lyocell volumes, over and above the successful 25.000 tons expansion in Heiligenkreuz (Austria), will be added to the market in 2019 and 2020 by Lenzing.

Lenzing continues to be fully committed to implement its sCore Ten strategy and remains on track for the specialty expansions such as Tencel Luxe filaments and Lensing Ecovero viscose fibres, however this decision will slow down the implementation of the lyocell specialty staple fibre growth. (GK)

Fibre2Fashion News Desk – India

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