For the producer of cellulosic fibers Lenzing AG, Lenzing/Austria, business developed well in the 2018 financial year. A significantly more challenging market compared with the record results of the previous year led to a decline in sales of 3.7% to €2.18 billion. EBIT (earnings before interest and tax) fell by 36% to €237.6 million. Expenditures for research and development (R&D) amounted to €42.8 million in the 2018 financial year (2017: €55.4 million).
By 2022, investment of approx. €100 million in sustainable manufacturing technologies and production facilities is intended in order to further strengthen the closed-loop model and support customers in replacing resource-intensive and environmentally harmful solutions.
The start-up of new capacities for lyocell fibers in Heiligenkreuz/Austria, the production start of Lenzing Ecovero fibers at the site in Nanjing/China, the acquisition of the remaining 30% of the Chinese subsidiary Lenzing (Nanjing) Fibers from the joint venture partner and the investment in another pilot plant for Tencel Luxe filaments are important steps to achieve the goal of increasing the share of specialty fibers in total sales.
Results for 2019 are expected at about the level of 2018 despite a significantly more demanding market environment.