Tencel in Lenzing Annual Reports (2005,2006)

Apart from photos of Naomi Campbell being replaced by, amongst others, Robert Smith and Dave Hoyland (see below) the 2005 Annual Report was notable for the paucity of anything worth extracting on lyocell or Tencel.

The revisionist definition of lyocell appears...

A novel fiber, developed by Lenzing, produced by an environmentally very 

sound solvent process. Its properties enable the design and production of new and innovative products. TENCEL® is the Lenzing brand for lyocell fibers.

...and the resolution to last year's cliff-hanger...

The Austrian cartel court approved the acquisition of the Tencel group at the beginning of April 2005. The approval was preceded by an agreement with Austrian cartel offices including several conditions and reservations. The protracted proceedings, however, lead to a EUR 1.5 mill. fine for Lenzing, affecting the 2005 result. 

The 2006 report was less interesting with the usual Tencel puff and mention of R&D developing a non-fibrillating version for textiles - see also A100; Grimsby 1999. 

Robert Smith

David Hoyland in front

Source: http://www.lenzing.com/fileadmin/template/pdf/konzern/geschaftsberichte_gb_ugb_jfb/GB_EN/GB_2005_EN.pdf

Lenzing's purchase of Tencel approved by Austrian authorities (2005)

LONDON (CNI)--Lenzing’s bid to acquire the Tencel cellulose fibres group has finally been approved by the Austrian Cartel Court, the Austrian fibres group said Wednesday.

The deal was originally announced in May 2004, subject to regulatory approval. Provisional agreement for the takeover had been given by the Austrian anti-trust authorities in February 2005 on the basis that a number of conditions and restrictions would be met by Lenzing.

These were addressed by the company and, it said in a statement: “The anti-trust authorities had no objections to releasing the modified project.”

By: Mark Whitfield

13 April 2005 16:46 [Source: ICIS news]

Chronologically Mark marks the end of our story.  Game over.  

We will however fill in some details for the Year folders, hope for more comments from those involved, more "Likes" and "+1's", add any news as it appears, and tidy up.

Lenzing’s Tencel Takeover to Proceed (2005)

Lenzing’s takeover of Tencel, its rival in the global market for lyocell cellulose fiber, had been blocked by Austria’s Supreme Court on competition grounds. However, the Austrian company says it has reached a compromise with the country’s antitrust authority, according to which the acquisition will be allowed to proceed within the next one to two months.

The merger, proposed 10 months ago, would give Lenzing a complete monopoly in the European and North American lyocell markets, where Tencel is the only other producer.

The Supreme Court upheld a decision by the Higher Regional Court of Vienna, Austria’s antitrust authority, that the acquisition from the investment group CVC Capital should be barred because it creates a monopoly in the fiber.

Under the compromise, Lenzing has agreed that over the next six years it will not close its 40,000 ton-per-year lyocell plant at Heiligenkreuz, northern Austria, thereby safeguarding 180 jobs. It has also pledged not to move a lyocell R&D unit out of Austria.

“Under Austrian competition law, a ban on an acquisition can be waived if a compromise is reached which benefits the Austrian economy,” says a Lenzing official.

The takeover did not have to be backed by the European Commission, the European Union’s main competition authority, because Tencel’s annual sales of €100 million ($133 million) were below the threshold for EU approval.

The only national antitrust authority, besides Austria’s, to investigate the acquisition was the Office of Fair Trading (OFT) of the UK, where Tencel is based. It accepted Lenzing’s argument that the merger would not form an illegal monopoly because lyocell has to compete against viscose, cotton, polyester and other fibers.

The OFT enquiry found that in 2003, Tencel produced a maximum of 55,000 tons of lyocell, equivalent to 60 to 80 percent of the total capacity of its plants at Grimsby, UK, and in Alabama. Yet it accounted for 75 percent of total worldwide sales of the fiber, according to the OFT.

28 February 2005 00:01 [Source: ICB Americas]

Lenzing modify application for Tencel takeover (2004)

Points to note:  

• Heiligenkreuz employed 180 people
• Lenzing Lyocell R&D employed another 130 people
• Any remaining Tencel R&D would be moving to Austria

LONDON (CNI)--Austrian fibres group Lenzing said Friday it will file a modified application for its acquisition of the Tencel cellulose fibres company in the next few days.

The Austrian Supreme Court on 14 February confirmed a 28 October decision by the anti-trust authorities restraining Lenzing from the acquisition.

However, an agreement was made with the anti-trust authorities prior to the ruling on conditions and limitations to be included in a revised application.

A Lenzing spokeswoman told CNI the company had not agreed that the acquisition would lead to a monopoly in its markets. Austrian law, however, contains a provision to safeguard the country’s economy against concentration of manufacturing segments.

She added that the company in its new application would have to promise to safeguard for six years the 180 jobs at its 40 000 tonne/year fibre production plant at Heiligenkreuz, Austria.

Lenzing also had to guarantee that its Lyocell research and development (R&D) business, which employs 130 people, will stay in Austria.

Since agreement has been reached on the terms, the company expects a swift approval of the merger. The spokeswoman said this would probably mean a final decision would be made in four to six weeks. 

18 February 2005 15:19 [Source: ICIS news]