The introduction of Lyocell to the market must be
expected to require considerably more time than was originally
assumed and will require additional funds. The Board of
Management is, however, convinced that this fiber of a
high-value technology has great potential for the future,
although Lyocell will continue to generate a sometimes considerable burden
on the business result in the years to come.
...research in 1998 focussed on the further development
of the Lyocell technology, especially in the transition of a
low-fibrillation Lyocell fiber to large-scale technical production
and market maturity, as well as on successfully completing the
development of a flat film on NMMO basis (Lyocell films).
Activities focused on stepping up the market
launch of the Lenzing Lyocell fiber. We were able to obtain good
results with our product, especially with the Haute
Couture sector,
with applications ranging from comfortable leisure - w e a r garments
for men to upmarket lingerie collections for women. However, in
spite of this success, the forecast sales quantities were not reached.
One main reason for this development was primarily the dramatic decline
of that textile segment where the Lyocell fiber would
have created or enhanced novel surface effects on account of its
special properties, such as for example the “soft denim“, “garment
wash“ and “peach skin“ effects. In addition, the crisis in Asia caused an
important export market like Japan to fall behind, which made it even
more difficult to plan production and the accompanying operative
situation.
In November 1998, the Lyocell marketing and
sales organization was integrated into the worldwide distribution of
Lenzing AG. This created the basis for more effective and efficient
marketing efforts. In 1998, the production
of Lyocell fibers at Heiligenkreuz , Austria, was also
successfully transformed to use chlorinefree bleached pulp as a
new primary material. This is another important step in actively
applying Lenzing AG’s pollution-control philosophy. In recognition of
its especially environmentally friendly technology, Lenzing Lyocell
G.m.b.H. & Co KG was awarded the ecology prize of
Austria’s industry. We are proud of this recognition, which is the
result of many years of innovative research activities at Lenzing AG.
In 1998, the EU Commission began to review the
Lyocell project at Heiligenkreuz in connection with the
subsidies granted. This review is a necessary measure, which
is prescribed and required under EU subsidization provisions. In
this connection, Lenzing
AG
is cooperating very closely with
all bodies involved. The
review
is expected to be completed at the end of 1999.
R&D Expenditure for research and development in the
different sectors of Lenzing AG amounted to ATS
157.4 million*), which is a respectable 2.6 % of the sales of Lenzing AG and once more on a very high level that
is far above the industry’s average. The focus was
on the production-oriented optimization of the Lyocell technology.
A new type of Lyocell fiber with low fibrillation is meant
to make further processing along the textile chain easier.
The development was s u c c e s sfully completed and is planned for full-scale technical implem e n t a t i o n as of the middle
of 1999.
Development work on flat films based on the Lyocell (NMMO) technology has been continued intensively. In December 1998, a cooperation agreement was signed with the Belgian company UCB, which is the market leader for cellophane films. Lenzing
and UCB intend to join efforts in further developing this
new product and bringing it to market maturity. The fact
that this cooperation agreement was signed is a testimony
of Lenzing AG’s high level of competence regarding the Lyocell technology. This type of cooperation serves as a pilot example of successful research activities by
Lenzing AG, as well as a model for future cooperations
and alliances.
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