Tencel in Lenzing Annual Reports 2014

During the 2014 reporting year, Lenzing successfully initiated production at its first TENCEL® jumbo production facility featuring a nominal capacity of 67,000 tons. For the first time, such large fiber volumes can be produced on a single production line. Conventional TENCEL® production lines are only one-quarter as large on average. Thanks to the new design of the jumbo production line, investment costs could be maintained at a very competitive level of approximately EUR 150 mn (or about EUR 2,200 per ton of capacity). 

The latest generation of TENCEL® technology incorporates the experience gained from the three existing TENCEL® production plants of the Lenzing Group located in Austria, USA and Great Britain. With a construction time of 24 months, Lenzing completely adhered to both the budgeted investment costs as well as all timetables. The TENCEL® fiber production secures 140 jobs at the Lenzing site. 

The successful start of the jumbo fiber production line serves as the basis for the further competitive scaling of TENCEL® fibers as a universally deployable textile and nonwoven fiber. The new, broader product portfolio on the basis of the TENCEL® technology successfully complements Lenzing’s specialty strategy. Expansion of global market leadership for lyocell The annual nominal TENCEL® production capacity of the Lenzing Group will rise from 155,000 tons to about 220,000 tons thanks to the new plant. In this way, Lenzing will further expand upon its worldwide leadership for lyocell and offer its global customers new expansion opportunities in both the textile and nonwoven segments as well as new and innovative applications. 

Typical applications of the high-tech fiber TENCEL® include sportswear, soft

Tencel in Lenzing Annual Reports (2011)

More from the Lenzing Annual Reports...

• Tencel selling at a 35% premium over viscose
• Tencel sales to nonwovens now above 40,000 tonnes per annum.
• Wipes, Face Masks, Medical, Battery Separators, Capacitor dielectrics mentioned as key applications
• TencelWeb(R) (spunlaid Tencel) is "the biggest development project at present"

In 2011, we not only placed considerable emphasis on volume growth. The steps we took to further expand and upgrade our capacities for the specialty fibers Lenzing Modal® at the Lenzing site and TENCEL® at our plants in Heiligenkreuz/Burgenland (Austria) and Grimsby (Great Britain), completed in 2011, were just as important in ensuring qualitative growth.  Furthermore, we applied for official approval to construct a new TENCEL® production facility in Lenzing with a capacity of 60,000 tons. Our objective is to further consolidate our leading technological, qualitative and quantitative position for TENCEL® fibers in coming decades.

The year 2011 also proceeded gratifyingly for TENCEL® textile fibers. Considering the entire year, TENCEL® continually obtained higher prices, and thus clearly distinguished itself from the general market trend. The price premium of TENCEL® textile fibers compared to Lenzing’s standard viscose fibers was more than 35% on average in 2011. One of the main reasons for this development was the continuing growth in the range of applications for TENCEL®. Accordingly, TENCEL® is not only found in the world of fashion, but increasingly integrated into home textiles. With respect to bed linens, TENCEL® fibers exploit their moisture management properties and are winning over a growing number of friends. The specialty fiber TENCEL® A100 used in the activewear and life style segments also achieved very good market successes.

Sales of TENCEL® fibers produced in an environmentally compatible manner are also being driven by an enhanced environmental awareness. Similar to Lenzing Modal®, Far Eastern sales markets for TENCEL® textile fibers proved to be more attractive in 2011 than their counterparts in the industrialized nations of the West. On balance, the average selling price per kilogram for Lenzing’s nonwoven fibers could be raised by close to 14% in 2011 to EUR 2.04/kg. Shipment volumes climbed by about 4% to 206,000 tons, thus accounting for almost 30% of Lenzing’s total fiber shipment volumes.  TENCEL® fibers comprised close to one fifth of nonwoven fiber shipment volumes.

In 2011 Lenzing succeeded in further expanding its market leader position for cellulosic nonwoven fibers used in the production of wipes. Lenzing profited from the strong demand along the value chain for fibers manufactured in an environmentally compatible manner but offering correspondingly good performance. Lenzing was granted PEFC1 certification in 2011 for all its nonwoven products manufactured in Lenzing. This certificate as well as the Lenzing nonwoven FSC2 certification ensures consumers that the raw material wood is derived from sustainable forestry. In addition to the major successes with baby wipes, market success was also achieved in the fields of cosmetics, household goods and industry in 2011. The cooperation with private label manufacturers was further intensified. Lenzing is also supporting its customers on the cost side with innovative products made possible by technical improvements, for example low weight.

An increasing number of global partners of Lenzing’s nonwoven fibers are relying on the positive reputation of the brands Lenzing Viscose® and TENCEL®. This trend strengthens the cooperation with important partners along the entire value chain. For example, at the end of 2010, a Japanese retailer launched an improved version of its baby wipes made of 100% TENCEL® on the market. The retailer conveys his trust in the brand to his customers on the basis of the reference on the label to TENCEL® in the accompanying advertising materials. The high quality baby wipes were granted the “Kids Design Excellence Award” in September 2011. Cosmetic facial masks made of nonwovens play an important role with Asian consumers. Here TENCEL® is also gaining in importance. Thanks to the pleasantly soft structure of the material which feels silky, an increasing number of skin-friendly facial masks are being manufactured with TENCEL®.

Medical applications comprised a further focal point in 2011. The use of Lenzing’s nonwoven fibers for hygienic applications developed stably.

R&D 

In the reporting year Lenzing also pressed ahead with the development of other non-filbrillating types of TENCEL® fibers. Due to their special properties these fibers are particularly suited for use in process-critical segments, for example in knitwear. For the first time TENCEL® fibers were successfully integrated into car seat covers in combination with polyester. The biggest technological challenge for the researchers in Lenzing is fulfilling the specifications of automobile manufacturers with respect to wet rub fastness and light fastness. In particular, the enhanced sitting comfort resulting from the outstanding moisture management of TENCEL® is a good reason for integrating the fiber into car seat covers.

In the technical segment, Lenzing achieved good success in 2011 with capacitors to compensate for peak electricity demand in motor vehicles. In this case TENCEL® nonwoven products were deployed as separators for an optimal ion exchange, thus enhancing the performance of the capacitors. Increased sales with TENCEL® nonwoven applications were also reported for lithium-ion batteries for electric-powered vehicles. Following the successful market launch of TENCEL® powder in mattress foam in 2010, Lenzing’s efforts in 2011 focused on scientifically evaluating expanding applications to other areas such as pharmaceuticals, cosmetics and detergents.  Furthermore, research was carried out in the reporting year on a completely new cellulose product from the lyocell technology. This refers to a gel consisting of submicroscopic  TENCEL® fibrids which can form clear and closed films in drying. This new type of TENCEL® gel could be used in a broad range of applications in the future, from coatings for paper or nonwovens to the paint and lacquer industry.

During the year under review Lenzing also pressed ahead with the biggest development project at present, i. e. TencelWeb™. This innovative technology enables TENCEL® nonwovens to be directly produced from the spinning solution, which features a high share of microfibers as  well as low weight. Further process and product optimization work was carried out in the pilot facility in 2011 along with the generation of customer samples.

Another focal point of the research carried out in the nonwovens segment in 2011 was the production of microfibers. Initial laboratory tests concluded that these microfibers have outstanding properties when used in battery separators.

Source: http://www.lenzing.com/fileadmin/template/pdf/konzern/geschaftsberichte_gb_ugb_jfb/GB_EN/GB_2011_EN.pdf

Tencel in Lenzing Annual Reports 2010 - Part 2

The unusually large mention of Tencel in the 2010 report continues with coverage of expansion plans, integration of Fibre with Pulp production, growth in nonwoven wipes, Tencel powders, Tencel with Chitosan, Tencel derivatives for Gel Dressings and spunlaid Tencel nonwovens.

In December 2010, further, far-reaching fundamental decisions were made as the basis for ensuring the medium-term growth of the Lenzing Group. It was decided to build the first TENCEL production plant in Lenzing (Upper Austria), with planned investments of about EUR 130 mill. required to achieve an annual capacity of approximately 60,000 tons. It will be the first backward integrated TENCEL. plant in the world which can be directly supplied by pulp manufactured by the pulp factory in Lenzing. Furthermore, it was also resolved to invest in the expansion of the TENCEL facility in Mobile (Alabama) with investment  costs of close to USD 30 mill., enabling capacity to be raised to about 50,000 tons. The production line shut down by the previous owner will be modernized and re-equipped as a means of satisfying the strong demand for TENCEL fibers in North and South America.

Cooperation in the field of baby products with the leading U.S. retailer Costco could be further intensified. In this regard, Lenzing benefits from the trend towards own brands, which opens up new perspectives to carry out cobranding activities with brands such as TENCEL and thus raise awareness of Lenzing brands among a very broad consumer base.

R&D
TENCEL displays a wide range of useful features, for example when used as TENCEL powder incorporated into mattress foam to improve moisture management. In cooperation with partners, corresponding products were prepared to be launched on the marketplace.

Other potential application areas of TENCEL powder are as plaster (used in the construction industry), in fiber-reinforced plastics, and as a replacement for fiberglass incorporated into injection molded parts.

A further new area of application for TENCEL fibers is in upholstery fabrics used in homes and in hotels. TENCEL has enabled the fabric to achieve excellent utility values (abrasion resistance), which are far superior to those of cotton.

The specialty fiber TENCEL C was also developed to market maturity. It features the application of chitosan, a natural raw material extracted from the shells of crustaceans, to the fibers. This process improves the already outstanding skinfriendliness of TENCEL fibers.

The largest development project currently being undertaken in the nonwovens area is TencelWeb. This new technology enables the production of TENCEL nonwovens from very fine filaments directly from the spinning solution. These filaments feature a large share of microfibers and a low weight. This innovative nonwoven was further optimized in cooperation with key customers. The nonwovens are to be incorporated into hygiene products and filter media.

Other research projects involved the development of products for wound treatment, a segment in which TENCEL in gel form is used as a wound dressing. TENCEL is also used as a replacement for the cotton incorporated into such well-established products such as gauze and cotton wool.

Source: http://www.lenzing.com/fileadmin/template/pdf/konzern/geschaftsberichte_gb_ugb_jfb/GB_EN/GB_2010_EN.pdf

Tencel in Lenzing Annual Reports 2010 - Part 1

This report has more on Tencel and Lenzing's enthusiasm for the Courtaulds concept of the Cellulose Gap than any previous report and will be split over 2 posts...

... market experts expect that cotton will not be able to sufficiently fulfill demand for high quality fibers boasting high wearing comfort despite the extensive use of genetically modified cotton plants. This shortage will lead to a so called “cellulose gap” which cannot be fi lled on the basis of the anticipated growth of production volumes for man-made cellulose fi bers at the present time. Additional factors in Lenzing’s favor are the outstanding technical properties of Lenzing fibers as well as the fact that the company is the only global supplier which can offer all three generations of man-made cellulose fibers, i.e. Lenzing Viscose., Lenzing Modal. and TENCEL.

Lenzing “Full Win”

On the basis of these fundamental considerations, Lenzing redefined its strategic objectives leading up to the year 2014 as follows: 

More than one million tons of Lenzing fibers are to be produced and marketed annually, of which more than one-third are specialty fibers  (Lenzing Modal., TENCEL.), enabling an average double-digit percentage sales growth and a simultaneous margin improvement, with about 700,000 tons of the required pulp supply derived from its own production capabilities.

Lenzing aims to achieve these targets by implementing the biggest expansion program in its corporate history, with expansion investments planned at almost all of its production facilities across the globe.

The positive market development in the second half of 2009 continued in 2010 as well. Demand for Lenzing fibers on the part of the textile and nonwovens industry could only be partially satisfied despite the expansion of production capacities in 2010.

The reason for this development was the long-term market trend towards the increased use of Lenzing Viscose., Lenzing Modal and TENCEL. fibers as described in the previous section of this report. In addition, the overall economic recovery combined with a broad-based upturn in private consumption also contributed to growth. In fact, the markets in Asia tended to overheat as a result already in the first half of 2010. Ultimately cotton prices exploded as of the third quarter 2010 due to the perceived danger of a physical shortage as a consequence of flood catastrophes in Pakistan and India. This

prematurely ended the expected normalization of the price situation in the second half of the year.

The TENCEL production facility in Heiligenkreuz, Austria also raised total capacity by 10,000 tons to about 60,000tons as of the 2011 business year thanks to a corresponding investment program. The TENCEL factory in Grimsby (Great Britain) carried out refurbishment investments, allowing for a considerable increase in production capacities for the TENCEL specialty fiber A-100 although total capacity remained the same.

Tencel in Lenzing Annual Reports (2009)

Tencel sales in Textiles begin to recover and the fibre is mentioned in Business Unit Textiles for the first time in a few years:

Sales of TENCEL® fibers were equally gratifying. Although the demand for TENCEL® for textile applications declined somewhat during the first months of 2009, Lenzing succeeded in gaining a strong market position for innovative fiber blends with cotton, in particular in the denim segment. TENCEL® applications for home textiles developed equally well after considerable marketing and development activity in the preceding years. Sales of flame retardant fibers for military applications remained stable whereas industrial protective applications declined due to the general economic situation.

...and in Business Unit Nonwovens the Wipes and Webs story continues.

Specialty wipes in the reporting year benefited from two factors. Firstly, the new flu raised awareness of prevention by hygienic measures and caused the demand for wipes with anti-bacterial action to rise. Secondly, consumers buying disposable products, such as wipes, increasingly opt for environmentally friendly alternatives. The certification of the TENCEL® fiber as fully biodegradable made Lenzing a global pioneer in this field. For example, a major US retailer in 2009 became a TENCEL® customer for its store brand of baby wet wipes. The company explains the ecological advantages of the Lenzing fiber on the package.  In technical applications, business unit Nonwoven Fibers emphasized its focus on niche products with future potential, such as components for hybrid drives and solar energy devices.

The cooperation with Weyerhaeuser started in 2008 for developing novel nonwovens products based on lyocell recorded further progress. In June 2009 a pilot plant for the production of TencelWebTM went operational at the Lenzing site. The plant produces novel cellulose nonwovens materials made from the raw material wood using the meltblown process. The product is an ecologically sound alternative to nonwovens products made from crude oil – an example of a sustainable climate policy for the industrial consumer market with positive effects on CO2 reduction. 

Source:http://www.lenzing.com/fileadmin/template/pdf/konzern/geschaftsberichte_gb_ugb_jfb/GB_EN/GB_2009_EN.pdf

Tencel in Lenzing Annual Reports (2008)

More extracts from Lenzing's Annual Reports...

In "Business Unit Textiles" the main message on Tencel appears in the photo below. 

 Sportswear is the key, but Home Textiles also gets a brief mention:

Tencel® Eco Bed, a special application for natural bed-linen, received the award as the best organic ecological product in the home textile sector in the USA.

Of more interest once again is "Business Unit Nonwovens" with the first mention in Annual Reports of Robert Smith and Malcolm Hayhurst's work on TencelWeb(tm):

Lenzing and the US company Weyerhaeuser, a global leader in forestry products, came to a basic agreement on the development of novel lyocell-based nonwovens products. The goal is to create an alternative to petrol-based plastics in the nonwovens sector by manufacturing convenience products for industry and hygiene on an industrial scale.

This project is the latest manifestation of "spunlaid cellulose" which first appeared in Courtaulds Research in the 1960's and was proposed for Tencel in 1988.  However I don't think anyone in Courtaulds saw it as an "alternative to petrol-based plastics in nonwovens".  We saw it as a way of making high-value 100% cellulose absorbent nonwovens for medical, hygiene and wiping markets at lower cost by virtue of direct-from-dope production in a Tencel plant.

Alluded to for the first time is the highly successful carboxymethylation of Tencel carried out by Hardev Bahia and Tom Burrow and commercialised by Courtaulds Research during the 90's.  The resulting hydrogel appeared first as the superabsorbent "SuperNova" fibre for tampons, and then "Hydrocel" which Convatec used to make the Aquacel range of wound dressings:

Product group medical applications manufactures upmarket cellulose fiber specialities. The focus of activity was placed on the successful implementation of innovative products, such as cellulose hydrogels for demanding wound care and also in cosmetics.

(More to come on these specialities)

Source: http://www.lenzing.com/fileadmin/template/pdf/konzern/geschaftsberichte_gb_ugb_jfb/GB_EN/GB_2008_EN.pdf

Tencel in Lenzing Annual Reports (2007)

More paragraphs extracted from the Lenzing annual reports...

There's no mention of Tencel in the section on "Business Unit Textile Fibres" or in the section on R&D. However under "Business Unit Nonwovens" we read:

The success of products based on TENCEL® nonwovens was remarkable. The convenience product sector grew considerably. Wipes for a broad range of applications – from hygiene and cleaning to medical applications – were much in demand. Sales of Lenzing fibers for technical applications increased as well. The unique properties of cellulose fibers, in particular TENCEL® enabled the implementation in new market segments such as the automotive industry, filtration technology and medical technology.  (see also Tencel Product development 1985-94)

In "Competition Rulings in Favour of Lenzing"...
The European Court of Justice, as court of last resort, ruled in favor of Lenzing...and that Lenzing had not received unjustified subsidies for its [Lyocell] production site at Heiligenkreuz (Austria)

Also, in "The evaluation of fiber sustainability" we read of a study showing Lenzing's viscose and modal to have less environmental impact than Tencel, all being better than cotton:

A comprehensive evaluation of fiber sustainability with regard to consumption of non-renewable resources, emission of greenhouse gases, impact on human well-being and impairment of ecosystems requires a holistic approach, in other words the compilation of a life cycle assessment. Using standardized methodology, a life cycle assessment for Lenzing Viscose®, Lenzing Modal® and TENCEL® in direct comparison with cotton, polyester and propylene fibers was carried out in collaboration with Martin Patel and Li Shen of the Copernicus Institute of Utrecht
University.

The evaluation of environmental impact was conducted according to the CML* method, developed at Leiden University considering the following indicators:

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

Tencel in Lenzing Annual Reports - (2004 - part 2)

More paragraphs extracted from the 2004 Lenzing annual report.  The Austrian Supreme Court's decision against the take over of Tencel must have made it a difficult one to write...

By taking over the Tencel group of companies in early May 2004, Lenzing marked a milestone.  On the one hand, this step means that the Group has secured its position regarding the Lyocell fibers technology, which is the technology of the future in the cellulose fiber sector; on the other hand, it is another major step towards becoming a global group. In addition to the two production sites in Grimsby, UK, and Mobile, Alabama, USA, Lenzing acquired a number of international marketing offices, an international sales team and the excellently positioned TENCEL® brand.

Although the competent international merger-control authorities did not have any objections regarding this take-over, Austria’s Higher Cartel Court (Supreme Court) issued a decision against the merger. However, while the proceedings before the Higher Cartel Court were still pending, Lenzing already reached a comprehensive agreement on the conditions and restrictions that will address all possible anti-trust concerns. It is therefore expected that a new notification of the merger can be processed swiftly and positively, since it will incorporate the arguments of the supreme-court decision.

Whenever activities overlapped, it was possible to achieve savings through integration. This applies especially to international marketing activities. Concerning production, combining the available expertise helped to achieve considerable improvements within a few months, both at the Austrian Lyocell site at Heiligenkreuz and at the sites in the United Kingdom and the USA.

Research and development for Lyocell fibers was integrated into one effective team (see also the chapter on “Research and Development”). The restructuring costs incurred were included in the result for the year.

R&D activities were thoroughly re-organized in the course of acquiring the Tencel group of companies in the course of the 2004 business year. It was decided to concentrate all Lyocell research and development activities at the Lenzing site. This combination of all forces ensures an efficient and intensive further development of this promising fiber in the years to come. In the wake of this consolidation, research activities at Spondon, UK, were discontinued. Some of the staff are now working in research and development at Lenzing. The efficient Lyocell pilot plant at Lenzing worked to full capacity during the 2004 business year.

With the concentration of R&D activities at the Lenzing site, Lenzing has now become the world’s largest research center for cellulose chemistry, focusing on cellulose fibers. It has about 130 staff members; another 50 persons are engaged in external cooperation projects.

Source: http://www.lenzing.com/fileadmin/template/pdf/konzern/geschaftsberichte_gb_ugb_jfb/GB_EN/GB_2004_EN.pdf

Tencel in Lenzing Annual Report (2004)

The report for the year Lenzing acquired Tencel contains an acknowledgement of the contribution made immediately by Courtaulds Tencel staff.

From the Chairman's Statement...

The third milestone of the 2004 business year was the take-over of the Tencel group of companies*). With Tencel the Lenzing Group has become the leading manufacturer of cellulose fibers worldwide. This step has helped us secure our world-market position on a long-term basis. We will now further improve the Lyocell technology for our customers, last but not least because it is a technology for the future, due to its compatibility with the environment. 

Moreover, Lenzing is now the only global supplier that accommodates all important qualities and types of cellulose fibers under one roof. Only Lenzing is able to offer its customers this complete range of products at absolute top quality and with top service. 

In addition, with Tencel we have been able to expand our human resources to include experienced staff members and to reinforce our impact on the international fiber market.

Within only a few weeks, cooperation between the Lenzing Lyocell team and the Tencel staff led to measurable improvements of our productions results.

The new corporate structure, which we introduced in 2004, consists of business units that comprise several sites. In the course of integrating Tencel, this structure demonstrated its merits within the first year.

(More to come from 2004)

Lyocell in Lenzing Annual Reports (2003)

Another extract from the Lenzing annual reports...

The demand for Lenzing Lyocell fibers developed very positively during fiscal 2003; the intensive marketing activities proved successful. Production lines worked to full capacity, handling orders both in the textile area and for nonwovens. Lenzing Lyocell has succeeded in opening up new, promising growth markets concerning home textiles. Thanks to its outstanding properties as a particularly pure fiber made of wood, a natural raw material, there is a strong demand for Lyocell in this market segment.

Against this background of a lively demand, completing the expansion program at the Heiligenkreuz site during fiscal 2003 came just in time. A total amount of EUR 36 mill. was invested into building a second production line. The new facilities were successfully taken into operation at the beginning of 2004, which doubled the production capacity at Heiligenkreuz to 40,000 tons per year. The bigger production quantity is also the basis for sustainable improvement of the earnings situation regarding Lyocell, since this makes it possible to achieve the corresponding reductions in specific production costs.

In the course of expanding capacities, the staff level was raised to 180 employees at the Heiligenkreuz site. Furthermore, the energy supply center of the Heiligenkreuz industrial park was bought in 2003, in order to secure energy supplies at favorable prices.

In September 2003 a deflagration occurred on the first production line, which caused a fire and considerable material damage. The incident was due to the faulty operation of an ancillary unit. The incident did not occur during normal operations, but when the existing production line was started up after a scheduled standstill, required in the course of the construction work on the second production line. The material damage and the costs of the temporary production standstill were covered by insurance policies.

The first months of 2004 were characterized by the start-up of the second production line at Heiligenkreuz. Since demand for Lenzing Lyocell fibers continues to be positive and expanded production capacities are available, one can expect a corresponding improvement in sales and earnings in comparison to 2003.

R&D
Lenzing AG operates a Lyocell pilot plant at the Lenzing site. This has helped to develop quality assurance steps for the big production volumes of the large-scale plant at Heiligenkreuz. Moreover, the production processes were improved, which will make it possible to use different pulp qualities.

Lyocell in Lenzing Annual Reports (2002)

Another lyocell extract from an old Lenzing annual report...

Fiscal 2002 was the most successful year to date for Lenzing Lyocell. Lenzing Lyocell fibers succeeded in recording a clear upturn on the market. An expansion of capacities is the consequence of this positive development.

Lenzing Lyocell GmbH & Co KG developed to our great satisfaction during the year under review. The product and marketing campaign, which was launched recently, made it possible to achieve a significant increase in sales in spite of a slack cyclical environment. Production facilities worked to full capacity. In the course of the year, technical adaptations helped to expand capacities by about 20% and to reach a new record level. On account of all of these measures, the result was substantially improved during the year under review.

As regards products, new priorities were set, both in the textile segment and the nonwovens area, and the customer base was broadened. New attractive areas of application for Lenzing Lyocell are, for example, terry cloth products and other products in the field of home textiles. Lenzing Lyocell filling fibers for bedding enjoy a high level of acceptance.

Decision taken on large-scale investment
On account of the good demand, the decision was taken during the year under review to further expand capacities by building a second production line. The costs required by the investment will amount to about EUR 35 mill. The additional production capacities will be available in early 2004.

Outlook
At the beginning of 2003, the energy and material supply center of the Business Park Heiligenkreuz was purchased by Lenzing AG, in order to secure energy supplies at favorable costs on a long-term basis. As a result, it will now be possible to benefit from the advantages of integration in the energy field as well, by optimally adjusting energy generation to fiber production. It is expected that there will be a further increase in sales in fiscal 2003. Activities will focus on finishing the second production line in time. Intensive marketing activities will go hand in hand with the increase in capacities.

R&D
...Another priority was the improvement in the Lyocell process technology, with the aim of optimizing and securing Lyocell quality, in order to increase productivity and to reduce the specific investment costs. This is also of major importance in connection with the imminent capacity expansion at the Heiligenkreuz plant. The development of Lyocell fibers for hometextile applications was continued with consistency, since this segment recently managed to achieve considerable acceptance by the market.

In July 2002 the fifth anniversary of the Lyocell plant at Heiligenkreuz was celebrated. This was followed in October 2002 by a seminar for journalists dedicated to Lyocell.

Click here to download the full report

Lyocell in Lenzing Annual Reports (2001)

Another lyocell extract from an old Lenzing annual report.  Once again Naomi Campbell's image decorated a few pages.

A lower demand from textile customers and the reluctance to purchase on the part of US businesses acted as a brake on the development of Lenzing Lyocell. It is positive to note that the delivered quantities were slightly above last year's level, although the overall conditions continue to be difficult. 82% of the fibers produced at Heiligenkreuz / Burgenland, Austria, were exported. The main markets in Europe are Italy, Spain and Portugal. Furthermore, deliveries go to China, Japan, South Korea, as well as Brazil and the USA. The result of the company continues to be negative, in spite of intensive measures to counter this trend. The fashion industry uses Lyocell for casual and jeanswear, as well as for products worn close to the skin, such as T-shirts and lingerie/underwear. Home textiles is a segment that is expanding continuously. The newly launched low fibrillation fiber Lyocell LF and the filling fibers are promising developments. Fibers for technical applications offer further good prospects.

 LYOCELL R&D: This year again, efforts to optimize the Lyocell technology were at the center of attention. New fibers were developed and existing ones were improved. The company stepped up activities to further develop a low-fibrillation Lyocell LF fiber, to improve the suitability of Lyocell for the nonwovens sector, as well as the use of the specific property profile of this new fiber generation for home textiles and technical applications.  

The following paragraph referred to CVC's attempt to merge Courtaulds and Lenzing's fibre interests. During the period when regulatory approval for this deal was being sought in the USA, Courtaulds largest and most efficient viscose plant in Mobile Alabama was closed on the basis that the single remaining US viscose plant operated by Lenzing in Lowland Tennessee should be preserved.  (It would be interesting to learn more about the thinking behind this. At the time, Lowland appeared the less viable plant!)

On 17 October 2001 the European Commission, for reasons of competition law, prohibited CVC Partners to acquire the majority of the Lenzing shares. This does not create any problems for the Lenzing Group, as we are able to continue on our course successfully on account of our size and global leadership position. The new majority shareholder, the B & C Group, considers itself to be the Austrian core shareholder with long-term entrepreneurial interests.

Click here to download the full report

Lyocell in Lenzing Annual Reports (2000)

The 2000 Lenzing annual report was dominated by the images of Naomi Campbell who had starred in their new advertising campaign and who may have been partly responsible for improved sales.  The paragraphs most relevant to lyocell follow:

Lyocell business activities were very good. In fiscal  2000 sales almost tripled, as compared to the year  before. The results are still negative, but have  clearly improved over 1999.  This growth is due to an optimized type mix, on  the one hand, and to an intensive worldwide  marketing strategy, on the other.  

The production facilities at Heiligenkreuz, where  the production capacity was expanded in June to amount to 20,000 tonnes, worked to capacity and  are being stepped up continuously. In parallel,  minor de-bottlenecking investments improved the  performance of the plant.The production  capacity was increased to 20,000 tonnes  per year in June 2000. After almost two years of  reviewing, the EU Commission confirmed that the  entire package of grants for the Lyocell plant at  Heiligenkreuz, Austria, is in full compliance with  the EU cartel-law provisions.

For the new fiber advertising line, we succeeded in  signing up Naomi Campbell, the world-famous  super model. She is to promote with and familiarize  the end user with Viscose, Modal and Lyocell - our  fibers made of timber, the natural raw material.  In addition to fibers - our core business - Lenzing  Plastics, Lenzing Technik and the paper division  also made major contributions to sales and results.  In the year 2000, our employees had - for the first  time - the opportunity to share in the success of  the company through a new success-oriented  payment scheme. Thus also our employees  benefitted from the good results.   

"ProViscose" - a blend of Lyocell and Viscose -  showed a positive development. This fiber blend  did not only boost sales of Lyocell, but also helped  Lenzing set a new quality standard for the viscose  segment by clearly improved product characteristics.  On account of the combination, the specific features  of both fiber types can implement their full  potential. As a result, product and care features,  such as dimensional stability, have been clearly  improved. After initial successes with bed linen  and terrycloth items, the home-textile applications  will be expanded. In addition, there are plans for  Lyocell to be used for nonwovens applications, a  market segment with great potential. 

The Lyocell LF fiber, launched in the fall of 2000,  opens up new product applications. The demand  for nonwovens fibers and ProViscose is moving in  the right direction.     

Click here to download the full report

Lyocell in Lenzing Annual Reports (1999)

These are the relevant paragraphs from the Lenzing Annual Report of 1999. Pre-blending lyocell with viscose emerges as a way to tackle some of the processing issues and presumably to introduce some lyocell to textiles at a lower price. The idea seems to have been revived this year as Eurocel(tm) for the nonwovens market.

Dr Haio Harms, Head of Research and Development at Lenzing since 1983...

"It is part of our strategy for success to invest a certain amount of our

resources into medium and long-term targets. Lenzing's research made a

decisive contribution to the company's competitiveness, while competitors

who lacked that farsightedness had to give in to crowding-out competition.

The broad product range, the value-added by spinoff products of the pulp

production, the solutions to pollution-control issues and the ongoing

improvements in efficiency would be impossible without constant efforts.

This also applies to innovations that pay off in the longer run."

Again this year, the top priority regarding Lyocell developments was on optimizing the Lyocell technology. In this connection, we were able to achieve major progress in broadening the primary-material base, in making more efficient use of our plants and in making the quality level more even. On account of efforts to expand the range of types and to make processing and finishing methods easier, we were able to expand our market base. The spectre now ranges from a Lyocell micro fiber to coarse-titer wool types and matted fibers. Special scope was given to further developing the technology used to produce Lyocell fibers with a reduced fibrillation tendency.

Dr Franz Raninger, Member of the Board of Management with Lenzing since 1994...

“Lyocell offers good growth opportunities. However, the traditional technology, based on viscose, still contains further potential for innovation. The numerous product developments at Lenzing in recent years are a clear proof of this point.”

In 1999, Lenzing took another important step in the direction of focussing on high-quality special fibers by developing new fiber blends, consisting of Modal/Lyocell and Viscose/Lyocell that can be used for textile applications.

Lyocell in Lenzing Annual Reports (1998)

1998 saw the last appearance Courtaulds annual report and is currently the first available year for Lenzing Annual Reports on their website.  Here are the paragraphs relevant to what was then called Lenzing Lyocell, the production of which was started at the Heiligenkreuz site during that year. Industrial scale Tencel production was started by Courtaulds 6 years earlier in Mobile Alabama. (This report is notably devoid of photographs.  Two years later, the 2000 report had photos of Naomi Campbell throughout.)

...Although numerous  intensive marketing efforts  and technical improvements  were made, the sold quantities  of the new fiber fell considerably short of the budgeted  figures. 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 is great potential  for the future, although  Lyocell will continue to generate  a sometimes considerable  burden on the business  result in the years to come.

...The research expenditure of Lenzing AG amounted to ATS 157.4 million (after ATS 200.1 million). The amount represents 2.6 per cent of the Lenzing sales, which is a remarkable figure also by international comparison. As before, 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...

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.

Tencel Expansion Update (2013)

An extract from the Lenzing 2013 Annual Report...

The global challenges facing the business world and the environment are formidable, and solutions are urgently needed. In the world of man-made cellulose fibers, TENCEL® is the predominant product of the 21st century in every respect, the true New Age fiber. Its natural raw material, the modern and environmentally compatible production technology and the enormous performance potential of the fiber itself make it unequalled in modern times. Only Lenzing successfully manages the industrial-scale production of TENCEL®, in which more than 99% of the solvent used is recycled in the closed-loop process. This means the ecological footprint of the fiber is unparalleled.Construction of the first TENCEL® jumbo production facility at the Lenzing site continued on schedule in 2013. The company was able to make up for weather-related delays in the first quarter. Almost all the technical equipment had been installed by the end of 2013. All piping and cabling work were well on track, so that the first tests of individual parts of the plant were already initiated. Lenzing plans to keep to its timetable, with the first TENCEL® fibers likely to leave the production lines of the new plant sometime around the middle of 2014. After the initial start-up phase, the new plant will boast a nominal annual capacity of 67,000 tons of TENCEL ® fibers. Investment costs are expected to total EUR 150 mn due to adjustments made to the original plans in connection with improved plant safety and an increased production volume.

The new TENCEL® facility reflects next generation TENCEL® technologies.

Tencel in Courtaulds Annual Reports (1981-90)

The Courtaulds Annual Reports contain concise statements of the progress of the Tencel development year-by-year.  These statements have been pasted into a series of 10 posts which can be read in sequence by scrolling down from here:

1981-82 - under "Research"

Technology is being developed in the use of novel solvents for the conversion of woodpulp to regenerated cellulose products, leading to lower effluent levels and reduced energy consumption in the manufacturing process.

1982-83 - under "Courtaulds Research"

 A pilot plant incorporating a process which directly dissolves cellulose ran successfully towards the end of the year.  First indications are that the process may provide a low cost route to novel types of fibres and films.

1983-84  - under "Courtaulds Research"

Development of the new process for directly dissolving and regenerating cellulose continued.  Samples of fibres, of fabrics made from them and of transparent films have been produced, all with interesting properties.

1984-85 - Under "Research"

The research progamme into the production of new fibres and films by direct dissolution and regeneration of woodpulp continued successfully.

1985-86 - under "Research"

The development of a direct solvent spinning system for cellulosic fibres and films continued successfully.  An expanded pilot plant will be available by the end of 1986.
1986-87 -  under "Fibres"
Research expenditure was again at a high level for all fibres, but especially in the development of the new solvent-spun cellulose fibre.  Its pilot-plant came on stream and good progress has been made on the next stage of production which will make commercial quantities available.
               - under "Research"
The programme to develop a new range of cellulosic fibres using a new direct solvent spinning system continued with the successful commissioning of an expanded pilot-plant and with engineering developments for further expansion.  The process gives significant improvements over existing fibre properties and environmentally.
1988-89 - under "Fibres"
The first commercial scale Tencel plant was commissioned during the year. Its capacity is modest and design work on larger units is now well underway.
                - under "Research"
Substantial work was undertaken to transfer expertise learned on the pilot plant...to the scaled up plant commissioned...at Grimsby.
1989-90 - under "Fibres and Films"
The new solvent spun fibre Tencel continued to progress well.

N.B.  (1) Tencel is not mentioned in the "Research and Technology" section in 89-90.
        (2) The Textiles business had been demerged and was no longer part of the Courtaulds Group.
        (3) Saiccor Pulp (the best pulp for making Tencel) had been sold in 1988 to fund acquisitions of US sealants and adhesives.
        (4) Bonded Fibre Fabric, the nonwoven business which had been modernised at the end of the eighties, was sold at the end of March.  (Tencel was showing great promise in nonwovens)
        (5) Prior to 1989-90, "Fibres" came immediately after the "Chairman's Statement" at the front of the Annual Report.   Here "Fibres" comes last after Coatings, Performance Materials, Packaging and Chemicals.  Furthermore it has been merged with the "Films" used in packaging - cellophane, polypropylene and polyethylene.  Maybe the continued development of Tencel clashed with the emerging strategy of getting out of Fibres and Textiles and was therefore downplayed.

Thanks to Ted Richards who provided the full set of Courtaulds Annual Reports from 1970 to 98

Tencel in Courtaulds Annual Reports (1990-91)

More Tencel extracts from the Courtaulds Annual Reports.  From this point on, Tencel project news becomes an increasing factor in Courtaulds share price:

under "Chairman's Statement" 
...Significant examples (of investing for organic growth) during the year have been further investment commitments to the new Tencel fibre... (Christopher Hogg will be replaced as CEO by Sipko Huismans on Aug 1st 1991)
under "Fibres and Films"
Market development of Tencel, the new solvent spun cellulose fibre, continued in the US, Europe and Japan, and work started on the first commercial scale Tencel plant, adjacent to the existing viscose rayon factory in Mobile.  

Tencel is not mentioned under "Research and Technology" but some Tencel pipework appears in a full page photo (above) which also features Anne Ronchetti in a hard-hat.  The caption reads The product of sustained and successful work by Courtaulds Research, the first full-scale Tencel solvent spun cellulosic fibre plant is now under construction in Mobile, Alabama. Offering a huge advance environmentally, the project involves close collaboration between Courtaulds Fibres, Courtaulds Research and Courtaulds Engineering, both in North America and, as here, at the pilot plant in Grimsby England.  N.B. the flow sheet in the photo is labelled Tencel Mobile - SL1.