Lenzing to build lyocell fibres plant in Thailand

27 Jun '19

2 min read

Pic: Lenzing

Lenzing is set to build a lyocell fibres plant in Prachinburi, Thailand. The plant will have a capacity of 100,000 tons and feature investments of around €400 million. Over the next years, it plans to invest more than €1 billion in new production facilities for lyocell fibres. Lenzing makes specialty fibres made from the renewable raw material wood.

The plant sets a new milestone in the history of lyocell fibres and will be the largest site of its kind. Site grading at Industrial Park 304, around 150 kilometres east of Bangkok, has been completed successfully and the investment is fully supported by the Board of Investment (BOI) of Thailand. Construction will start this fall and production will commence towards the end of 2021, according to Lenzing.

Thailand has favourable trade agreements with the major Asian economic blocks. The selection of Industrial Park 304 in Prachinburi was based on its excellent overall infrastructure and the sustainable biogenic energy supply, which leads to low CO2 emissions to protect the climate. Over the coming years, Lenzing will further expand at the site in Thailand, which has space for several plants. The investment in the first phase already includes the general infrastructure that will benefit future expansion. Lenzing will continue to look for potentially expanding lyocell production in other parts of the world as well.

“Tencel lyocell fibres are considered a benchmark in ecologically responsible fibres. This expansion underscores Lenzing’s commitment to improve the ecological footprint of the global textile industry. This investment in Thailand represents the next consistent step in the implementation of our sCore TEN strategy and will help to further transform Lenzing into a specialty fibres company”, Stefan Doboczky, chief executive officer for Lenzing said.

“The project has received very good attention in the engineering market. Lenzing aims at implementing the project in a strategic partnership with an international engineering company also chosen for its capability to support Lenzing’s further organic growth worldwide. Integrated teams including an international and highly skilled Lenzing workforce will work together with the engineering contractor, which will be selected soon. Commissioning of the plant and start of production will take place in the second half of 2021”, Heiko Arnold, chief technology officer of Lenzing said. (GK)

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