Tencel Sales Down: Courtaulds, Lenzing Deny Merger (1998)

Courtaulds and Lenzing deny speculation that they are planning to merge their viscose operations. Both have, however, admitted that they have been discussing how to reduce overcapacity in the fiber.

"We have been talking to a number of producers about the problem of overcapacity," says a Courtaulds spokesman. "There has got to be a better balance between supply and demand in the sector."

Courtaulds last year reduced production of viscose in the UK for low-priced textile markets. The company also suffered a drop in orders for Tencel, its cellulosic lyocell fiber, as a result of excess stocks.

Lenzing and Courtaulds announced at the beginning of this year that they had settled their patent dispute over technology for the production of lyocell.

23 February 1998 [Source: ICB Americas]