• Linkdin
Maximize your media exposure with Fibre2Fashion's single PR package  |   Know More

Sales volume at Lenzing sets new record in 2012

22 Mar '13
7 min read

“The record year 2011 must not obscure the view on the second-best result in the company’s history. As planned, 2012 represented the peak year of investments when it comes to the implementation of our growth strategy“, says Lenzing’s Chief Financial Officer Thomas G. Winkler. “Due to Lenzing’s stable financial position and low debt we can afford this investment into the future without touching on our strategic liquidity reserve of more than half a billion euro.”

Adjusted equity of the Lenzing Group rose to EUR 1,15 bn at the end of 2012, an increase of 10.0% from the prior-year level of EUR 1,05 bn. This corresponded to an adjusted equity ratio of 43.8% of total assets (2011: 44.8%) which increased as a consequence of the record investments which were made.

Segment Fibers

Initial estimates conclude that the rise in world fiber production only amounted to 1.2% during the reporting year, with total volume up only slightly from 81.0 mn tons to 82.0 mn tons. This was in contrast to the 6.4% increase generated in 2011 and owing to the continued slow economic development. Worldwide production of man-made cellulose staple fibers, the core business of the Lenzing Group, climbed 9.2% in 2012 to 3.66 mn tons, thus expanding at a considerably faster rate than the global fiber market as a whole.

The fiber market in 2012 was dominated by a significant decrease in selling prices for all fibers. The average price of cotton, the benchmark for the entire fiber industry, fell more than 40% below the prior-year level. Cotton inventories further increased, and the global stock-to-use ratio reached a record level of more than 70%. Spot prices for viscose fibers were down by about 15% in China, the world’s largest fiber market.

Lenzing achieved a new sales record in 2012 against the backdrop of a very difficult market environment. The average fiber selling prices of the Lenzing Group fell by 12%, decreasing from EUR 2.22 per kilogram to EUR 1.96 per kilogram.

“The fiber market rewarded Lenzing for its high product and service quality as well as its close cooperation with and integration in the textile chain”, states Friedrich Weninger, Member of the Management Board and Chief Operating Officer. “In particular, our specialty fibers Lenzing Modal and TENCEL enabled us to successfully differentiate ourselves from standard products manufactured by Asian producers. In addition, we successfully attracted new customers and opened up new markets while launching new innovative fiber applications on the marketplace”, COO Weninger says.

Lenzing Modal and TENCEL achieved price premiums of 40% - 60% in 2012 compared to standard viscose fibers. Specialty fibers accounted for approximately 35% of fiber sales in 2012. However, in the course of the year, selling prices for Lenzing’s specialty fibers had to be continually adjusted downwards in line with general price levels as a result of the significant drop in cotton and viscose fiber prices.

Leave your Comments

Esteemed Clients

TÜYAP IHTISAS FUARLARI A.S.
Tradewind International Servicing
Thermore (Far East) Ltd.
The LYCRA Company Singapore  Pte. Ltd
Thai Trade Center
Thai Acrylic Fibre Company Limited
TEXVALLEY MARKET LIMITED
TESTEX AG, Swiss Textile Testing Institute
Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)
Taiwan Textile Federation (TTF)
SUZHOU TUE HI-TECH NONWOVEN MACHINERY CO.,LTD
Stahl Holdings B.V.,
Advanced Search