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Global economic decline burdens fiber industry - Lenzing
08 May '09
4 min read
Outlook
The year 2009 will be a difficult and volatile business year for the Lenzing Group, in particular in view of the further marked decline of the global economy in the first months of 2009. Domestic demand in western industrialized nations remains weak. There are first signs of quantity demand in business sector fibers firming up. There is, however, no indication to which extent this will lead to sustainable stabilization. Prices remain at absolutely unsatisfactory levels and margins are depressed. The global market situation remains uncertain, highly volatile and currently unpredictable.
As unsatisfactory is the situation for Segment Plastics. The recent easing of raw material prices and the expected comprehensive spending by the public sector may have positive impact on the construction industry and by implication the business development of Lenzing Plastics. Due to good order bookings, Segment Engineering expects a stable development of its business.
Further cost optimization and savings potential in the double-digit million euro range will be realized in all business units and at all sites, in production as well as in sales and administration. Segment Plastics will press ahead with optimizing its products and restructuring its organization.
Business development is expected to recover slightly at a low level with the end of the second half-year 2009, provided the global economy becomes less volatile and provided that the perceptible stabilization of demand will endure throughout the summer months.
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The year 2009 will be a difficult and volatile business year for the Lenzing Group, in particular in view of the further marked decline of the global economy in the first months of 2009. Domestic demand in western industrialized nations remains weak. There are first signs of quantity demand in business sector fibers firming up. There is, however, no indication to which extent this will lead to sustainable stabilization. Prices remain at absolutely unsatisfactory levels and margins are depressed. The global market situation remains uncertain, highly volatile and currently unpredictable.
As unsatisfactory is the situation for Segment Plastics. The recent easing of raw material prices and the expected comprehensive spending by the public sector may have positive impact on the construction industry and by implication the business development of Lenzing Plastics. Due to good order bookings, Segment Engineering expects a stable development of its business.
Further cost optimization and savings potential in the double-digit million euro range will be realized in all business units and at all sites, in production as well as in sales and administration. Segment Plastics will press ahead with optimizing its products and restructuring its organization.
Business development is expected to recover slightly at a low level with the end of the second half-year 2009, provided the global economy becomes less volatile and provided that the perceptible stabilization of demand will endure throughout the summer months.
Click here to view more:
Lenzing Group
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