Tencel Sales Update (2013)

Another Extract from the 2013 Lenzing Annual Report...

Sales of TENCEL® fibers for textile applications were at a high level in 2013 against the backdrop of an attractive price premium compared to viscose fibers. Lenzing succeeded in opening up new markets and new customer segments, which was also important in the light of the planned coming on stream of the new TENCEL® production facility in Lenzing in the middle of

2014. Despite the production interruption at the TENCEL® factory in Heiligenkreuz, shipment volumes still surpassed the comparable prior-year figures. The products TENCEL® LF and the new, extremely high-quality TENCEL® fibers Micro-LF and TENCEL® Micro were well received by Asian customers. Similarly, the use of TENCEL® fibers in the bed linen segment was further expanded.  From a regional perspective, Asia remained the strongest sales market for the textile applications of both Lenzing Modal® and TENCEL®.

The priority for TENCEL® was on expanding the areas of application of this versatile fiber. In 2013, TENCEL® fibers were used for the first time as upholstery fabrics for sofas. In addition to the aesthetically pleasing advantages of intense colors and a velvety sheen, sofas with a fabric cover of TENCEL® boast a lower electrostatic charging compared to the conventional

polyester covers. Moreover, the removable fabric covers can be laundered at home, and thus are easier to keep hygienically clean. Furthermore, Lenzing intensively worked on opening up new fields of application for TENCEL® in the construction business. In addition to initial market success with TENCEL® powder in pasty plasters, one focal point in 2013 was on developing TENCEL® additives as a stabilizing factor for building materials, particularly concrete.

Initial application tests for the first hydrophobic cellulose fiber TENCEL® Biosoft were carried out together with customers in the 2013 financial year.

In 2013 Lenzing presented “EUROCEL ”, a new fiber blend consisting of 50% high-quality Lenzing viscose fibers manufactured in Europe in an environmentally compatible manner along with 50% TENCEL®. EUROCEL is a new type of high-end nonwovens quality to be selectively used for hygienic applications (e.g. baby care) as well as in the household and industrial

sectors. The underlying concept of supplying fibers verifiably manufactured in Europe for European products appeals to customers aiming to differentiate themselves from competitors on the basis of regional origin and sustainability.