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Lenzing is used to double-digit growth over last 10 years
23 Feb '11
5 min read
“We picked the right time to put the fourth production line at our subsidiary PT. South Pacific Viscose (SPV) in Indonesia into operation. In addition, we put in place debottlenecking programs at our viscose fiber factory in Nanjing/China and at SPV. Even with this dynamic expansion, we could not fully satisfy the strong demand for Lenzing fibers”, says COO Friedrich Weninger, who is also responsible for the Fibers segment. In total, Lenzing was able to increase its fiber production capacity from 605,000 tons to approx. 710,000 tons currently.
Concerning the pulp business, the acquisition of a 75% stake in the pulp mill Biocel Paskov (Czech Republic) was an important milestone. By means of a comprehensive investment program, Paskov is currently being converted into a swing capacity pulp plant that will be able to produce both paper and dissolving pulp.
The development of fiber prices in 2010 mainly reflected the strong demand and the physical shortage of cotton that started to become apparent in late summer 2010. Lenzing was able to take advantage of the upward trend in fiber prices to effect several price increases and thereby successfully offset rising raw material prices for wood, pulp and chemicals. “However, we intentionally decided not to fully match the cotton price increases, as we see ourselves as a long-term and responsible partner to our customers”, Weninger adds.
The strong demand for Lenzing fibers applied to the all textile and nonwovens business areas. Products such as the specialty fiber TENCEL C, which exhibits especially skin-friendly features due to the integration of micro-particles (chitosan), were newly introduced. Lenzing achieved a technical breakthrough in 2010 by developing new applications of TENCEL powder in foam mattresses.
“With a net debt that is lower than annual EBITDA and liquid funds as well as credit lines in excess of EUR 0.5 billion, we already are well positioned to implement our ambitious investment program”, as CFO Thomas Winkler summarizes the financial situation.
“Lenzing is used to double-digit growth and has proven to be extremely crisis-resistant over the last 10 years”, Winkler adds.
Click here to read more details:
Concerning the pulp business, the acquisition of a 75% stake in the pulp mill Biocel Paskov (Czech Republic) was an important milestone. By means of a comprehensive investment program, Paskov is currently being converted into a swing capacity pulp plant that will be able to produce both paper and dissolving pulp.
The development of fiber prices in 2010 mainly reflected the strong demand and the physical shortage of cotton that started to become apparent in late summer 2010. Lenzing was able to take advantage of the upward trend in fiber prices to effect several price increases and thereby successfully offset rising raw material prices for wood, pulp and chemicals. “However, we intentionally decided not to fully match the cotton price increases, as we see ourselves as a long-term and responsible partner to our customers”, Weninger adds.
The strong demand for Lenzing fibers applied to the all textile and nonwovens business areas. Products such as the specialty fiber TENCEL C, which exhibits especially skin-friendly features due to the integration of micro-particles (chitosan), were newly introduced. Lenzing achieved a technical breakthrough in 2010 by developing new applications of TENCEL powder in foam mattresses.
“With a net debt that is lower than annual EBITDA and liquid funds as well as credit lines in excess of EUR 0.5 billion, we already are well positioned to implement our ambitious investment program”, as CFO Thomas Winkler summarizes the financial situation.
“Lenzing is used to double-digit growth and has proven to be extremely crisis-resistant over the last 10 years”, Winkler adds.
Click here to read more details:
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