Lenzing: Continued positive development of th...

Continued positive development of the specialty fiber business


The producer of cellulosic fibers, Lenzing AG, Lenzing/Austria, continued its solid business development in the 3rd quarter (Q3) of 2019 despite a significantly more challenging market environment.
Sales of the Lenzing Group developed at a similar level to the prior-year period and amounted to €1.62 billion (-1.1%), despite the steep decline in prices for standard viscose. However, based on a further product mix optimization and higher prices for specialty fibers, the decrease in sales was largely offset; the share of specialty fibers, at 49.8%, significantly exceeded the prior-year value of 44.1%.
EBIT (earnings before interest and tax) fell by 19.3% to €153.5 million. The EBIT margin dropped to 9.5% (from 11.6% in the comparative period).
Lenzing plans to build a state-of-the-art lyocell plant with a capacity of 100,000 tons in Prachinburi/Thailand. In Q3, Lenzing chose Wood Plc., Aberdeen/UK, as a general contractor for detailed engineering, purchasing and construction management and supervision. In addition, the conversion of the production capacities from standard viscose to Lenzing Ecovero branded specialty viscose fibers was also continued during the reporting period.

Your Newsletter for the Textile Industry

From the industry for the industry – sign up for your free newsletter now