Lenzing offering continuous filament Tencel

At an exclusive event in Paris, the Lenzing Group launched a new product: TENCEL™ Luxe. The TENCEL™ Luxe randed lyocell filament is another key milestone in the implementation of the company’s sCore TEN strategy and the first time that Lenzing enters the filament market. It will further support Lenzing’s shift to become a true speciality player in the botanic materials market derived from sustainable wood sources. TENCEL™ Luxe: The new player of eco-couture fabrics TENCEL™ Luxe branded filaments are the new player for sustainable high-end cellulose textiles by offering superior aesthetics, performance and comfort level that allow them to be the perfect partner with other noble fibers such as silk, cashmere or wool. The smooth surface of the TENCEL™ branded Luxe filament gives fabrics a silky smooth feel and liquid-like drape for the most sensual silhouettes. Moreover, TENCEL™ Luxe branded filaments are naturally breathable due to their wood-based origin and offer outstanding color fastness, enabling designers to express bold color palettes where creativity knows no boundaries. 

TENCEL™ Luxe  eco-botanic lyocell filaments are made from wood pulp, which is sourced from sustainable wood in line with Lenzing’s strict Wood and Pulp Policy. They are produced using Lenzing’s pioneering closed-loop lyocell production process, which has received the “European Award for the Environment” from the European Union. This process ensures minimal environmental impact due to low process water and energy use and raw materials consumption.

“We are committed to setting industry standards in order to enhance the protection of our environment while making filaments for fabrics that are TENCEL™ Luxe is a further sign of our ongoing commitment towards innovation and sustainability”, explains Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “The expansion plan represents the next consistent step in the implementation of our sCore TEN strategy and is a commitment of Lenzing as a hub for research & development and engineering.” TENCEL™ Luxe is another proof of Lenzing’s innovation strength*. It will open new markets for the

Capacity Expansion in Heiligenkreuz

 Expansion of capacities for premium specialty fibers by 25,000 tons
 Investments of about EUR 70 mn over the next twelve months
 Project highlights strategic importance of Heiligenkreuz for TENCEL® premium fibers

Heiligenkreuz – The Lenzing Group is expanding production capacities for its specialty fiber TENCEL® at its site in Heiligenkreuz, Burgenland. After obtaining all required approvals and permits, the expansion project was initiated today, Tuesday, March 21, 2017. The ground-breaking ceremony was attended by Lenzing CEO Stefan Doboczky, along with Bernd Zauner and Dieter Eichinger, the two managing directors of Lenzing Fibers, Burgenland’s Provincial Governor Hans Niessl and Alexander Petschnig, the Regional Minister for Economic Affairs.
“We will invest about EUR 70 mn over the coming twelve-month period to expand production capacities for our high-quality botanic specialty fibers”, Doboczky says. “With this investment we are responding to strong global demand for new types of TENCEL® premium fibers such as the RefibraTM fiber, using cotton scraps from the manufacturing of cotton garments and wood as raw materials. This fiber makes a widely-recognized contribution to the circular economy in the textile industry. The fiber was very successfully launched on the market in February by our strategic partner Inditex in its Zara stores”, he adds.

Annual production capacities for fibers will be increased by about 25,000 tons as a result of the investment. The fibers will be available to customers starting at the end of the first quarter of 2018.

“We launched the production of lyocell fibers in Heiligenkreuz 20 years ago, and have expanded the site to make it to one of the largest industrial employer in Southern Burgenland. The new investments comprise a further important milestone in our success story, and will provide added impetus to growth in a structurally weak region”, states Zauner.

Lenzing put its first industrial-scale lyocell fiber production facility into operation 20 years ago. Today the fibers are sold under the TENCEL® brand name. A recent study carried out under the scientific supervision of Friedrich Schneider, Professor at Johannes Kepler University in Linz, concluded that the Lenzing plant in Heiligenkreuz generates considerable regional economic effects. In addition to the approximately 230 jobs at Lenzing Fibers itself, around 940 additional jobs are secured on a long-term basis thanks to the company’s economic activities in the region. The additional value creation equals about EUR 102 mn per year.

In its 20-year history, the Heiligenkreuz plant has sold close to 700,000 tons of fibers and exported the majority across the globe, as far away as China, Korea and Japan. The factory in Heiligenkreuz has been continuously expanded due to rapidly growing demand. Up until now, Lenzing has invested a total of roughly EUR 750 mn to build and extend production capacities for TENCEL® fibers. In addition to the Heiligenkreuz facility, these specialty fibers are also manufactured at the Lenzing site, in Mobile (USA) and Grimsby (Great Britain) (where the original Tencel process developed by Courtaulds first went into production in the 1990's. Ed.)

The lyocell technology applied in Heiligenkreuz is characterized by a very good environmental performance. The cellulose fibers are derived from the renewable raw material wood in a closed-loop process, resulting in a minimal amount of environmentally harmful emissions. Due to their outstanding properties, TENCEL® fibers boast a particularly broad range of applications, both in the world of fashion as well as technical areas and nonwovens. Lenzing is the leading producer of lyocell fibers by far, and is continually upgrading and refining this technology.

Source: Lenzing PR

Lenzing invests in new TENCEL® fiber plant in the USA

 State-of-the-art 90,000 tons TENCEL® fiber plant to be built in Mobile, Alabama
 Investment of EUR 275 mn – operations to start in the first quarter of 2019
 Strengthening of technical expertise by creating a new Management Board Role – Heiko Arnold appointed Chief Technology Officer

Lenzing - The Lenzing Group aims to increase the share of specialty fibers as a percentage of revenue to 50 percent by 2020. Following the previously announced expansion plans for Lenzing, Heiligenkreuz (Austria) and Grimsby (Great Britain), the Supervisory Board of Lenzing AG approved yesterday the investment for a TENCEL® fiber plant in the USA. Lenzing now plans to construct a state-of-the-art plant with a production capacity of 90,000 tons per year at its site in Mobile, Alabama. The new facility will be the largest TENCEL® fiber plant in the world, it will set a new milestone in the history of lyocell fibers. The investment volume will total USD 293 mn (EUR 275 mn). The new plant will utilize the latest technological standards and is scheduled to start in the first quarter of 2019.

The Lenzing Group currently has a worldwide production capacity of 222,000 tons per year of TENCEL® fibers. The new plant in Mobile plus the already announced debottlenecking projects at the other TENCEL® fiber sites will increase the total TENCEL® fiber capacity by more than 50 percent by 2019. The decision to build this plant in the US was supported by the good infrastructure at our Mobile site and attractive energy costs.
“This investment represents another major milestone in the implementation of our corporate strategy sCore TEN. It will bring us a big step further to reach our target of 50 percent revenue from specialty fibers by 2020“, explained Lenzing CEO Stefan Doboczky. “This expansion also underscores our commitment to all our TENCEL® fiber customers, who continue to make their products even more sustainable using TENCEL® fiber, the world’s most sustainable botanic fiber,“ added Doboczky.

The disciplined implementation of the Lenzing’s expansion program is essential for driving the Lenzing Group’s organic growth agenda. Therefore it was decided to create a new Management Board role, pooling together the key technical, operational and engineering responsibilities. The Supervisory Board of the company appointed today Heiko Arnold as the new Chief Technology
Officer. In addition to a strong scientific and technical education, Arnold has gained many years of experience with BASF in the realization of major investment projects and continuous operational improvements as well as extensive know-how in Research & Development. He will be responsible for all technical departments in the Lenzing Group.

“We are pleased to welcome Heiko Arnold, a further expert with broad international experience, to Lenzing’s Management Board team“, commented Hanno Bästlein, Chairman of the Lenzing Supervisory Board. “Lenzing is on a successful, dynamic growth course with the development and implementation of the new sCore TEN corporate strategy, and that makes an increase in the Management Board to four persons a reasonable step. His 15 years of experience in Asia, in the realization of major investment projects and in operational excellence make Arnold a perfect match for the challenges faced by Lenzing“, explained Bästlein.

Lenzing's results for 2015

Wednesday, 23 March 2016

Revenue rose by 6% to EUR 1.98 bn
EBITDA increase of 20.7% to EUR 290.1 mn
Dividend proposal: doubling to EUR 2.00 per share
Share of specialty fibers up to 40.5%
Further earnings improvement expected in 2016

Thanks to a strong operational performance, the Lenzing Group significantly improved just about all relevant economic and balance sheet indicators in the 2015 financial year compared to its business results in 2014.

Consolidated revenue climbed by 6.0% to EUR 1.98 bn. This increase is particularly due to higher fiber selling prices, the growing share of specialty fibers in its product mix and positive exchange rate effects. EBITDA (earnings before interest, tax, depreciation and amortization) improved by 20.7% to EUR 290.1 mn, up from the prior-year figure of EUR 240.3 mn. Lenzing’s performance in 2015 corresponded to an EBITDA margin of 14.7% (2014: 12.9%). EBIT (earnings before interest and tax) of the Lenzing Group increased to EUR 151.1 mn from EUR 21.9 mn, corresponding to an EBIT margin of 7.6% (2014: 1.2%). Earnings before tax (EBT) amounted to 149.1 mn, substantially higher than EUR 7.3 mn in 2014. The group net profit for the year totaled EUR 124 mn, compared to a loss of EUR 14.2 mn in the previous year. Earnings per share in the 2015 financial year rose to EUR 4.63, up from minus EUR 0.51 per share in 2014. On the basis of this good financial performance, the Management Board and Supervisory Board will propose that the upcoming Annual General Meeting approve the distribution of a dividend of EUR 2.00 per share for the 2015 financial year, double the dividend for 2014.

“We made substantial progress in 2015, and delivered the promised improvements to our business operations,” says Stefan Doboczky, Chief Executive Officer of Lenzing AG. “We strategically realigned the company, improved the earnings and cost structure and enhanced our financial strength. We also expect a considerable rise in earnings once again in 2016 provided that the underlying business framework does not significantly change.”

Solid balance sheet structure, clear improvement of ROCE to 8%

Lenzing boasts a solid balance sheet structure which was further optimized in the course of the 2015 financial year. Adjusted equity increased by 15% to EUR 1.23 bn (2014: EUR 1.07 bn). The adjusted equity ratio amounted to 50.6%, the highest level since the year 2006 (2014: 44.9%). Net financial debt was sharply reduced by 27.0% to EUR 327.9 mn (December 31, 2014: EUR 449.5 mn). Accordingly, the ratio of net financial debt to EBITDA declined from 1.9 at the end of 2014 to 1.1 at the end of 2015. The return on capital generated by the Lenzing Group improved thanks to the positive earnings development. As a result, the return on capital employed (ROCE) increased to 8.0%, compared to minus 0.1% in the previous year. At the same time, the return on equity (ROE) rose to 13.0% (2014: 0.7%).

Investments in intangible assets, property, plant and equipment (CAPEX) of the Lenzing Group totaled EUR 70.9 mn in the 2015 financial year, compared to the prior-year level of EUR 104.3 mn. Following completion of the TENCEL® fiber production plant at the Lenzing site in 2014, the focus of Lenzing’s capital expenditures in 2015 was on maintenance work as well as the implementation of quality and optimization measures. The excelLENZ cost optimization initiative was concluded in 2015. The new strategy sCore TEN was developed by the Lenzing team and is already in implementation.

Share of specialty fibers up to 40.5% of group revenue

Demand for high-quality Lenzing fibers was strong in 2015, encompassing all regions and product groups. For this reason, the pulp and fiber production capacities of the Lenzing Group were well utilized against the backdrop of high production output. In particular, sales of the specialty fiber TENCEL® increased significantly. The share of specialty fibers as a percentage of total group revenue was 40.5% in the 2015 financial year, compared to the 35.0% in the previous year. Expenditures for research and development were increased by 47% to EUR 29.8 mn, in line with the company’s strategy of focusing on the development, production and marketing of innovative specialty fibers.

Outlook for 2016

The volatile development prevailing on the global fiber market is expected to continue. High cotton inventories and low polyester selling prices intensify price competition on the market i.e. inter-fiber competition. However, the market segment of wood-based cellulose fibers, which is of relevance to Lenzing, is showing signs of developing more positively than the overall fiber market. Demand for cellulose fibers remains strong, and the ratio of supply to demand is favorable. Assuming unchanged conditions on the fiber market and currency exchange rates, Lenzing expects further improvements in earnings in the current 2016 financial year compared to 2015.

Lenzing: Profitable Growth Thanks to Eco-Friendly Specialty Fibers

• Share of revenue generated by specialty fibers targeted to rise to 50% by 2020.
• The nonwovens segment is expected to expand twice as fast as the textile market. 
• EBITDA growth of approx. 10% p.a. until 2020 
• Increase in ROCE to more than 10% by 2020 

The Lenzing Group is presenting its business strategy for the coming years entitled “sCore TEN”. Accordingly, Lenzing’s main priorities are strengthening the company’s core business, intensifying cooperation with customers along the value chain, increasing the share of specialty fibers to 50% of total revenue by 2020, expanding its quality and technological leadership for man-made cellulose fibers and opening up new attractive business areas.

“Our objective is to safeguard and expand Lenzing’s leadership role on the dynamic growth market for man-made cellulose fibers“, says Lenzing’s Chief Executive Officer Stefan Doboczky. “To achieve this, we will focus more intensively on the most attractive segments in the specialty fiber business. Lenzing will put value before volume in the future. We aim at achieving volume growth.”

Lenzing expects demand for man-made cellulose fibers to increase by 5 to 6% p.a. until 2020, which is nearly twice as fast as the global fiber market. The primary factors driving demand are the continuing growth of the world’s population and rising prosperity in the emerging markets. Forecasts call for a rise in per capita textile consumption in the emerging markets by all in all 50% in the period 2010 to 2020. In the industrialized countries the nonwovens industry, an important sales market for Lenzing, will profit from the increased demand for hygiene products. The nonwovens segment is expected to expand twice as fast as the textile market.

New CEO at Lenzing

Vienna, March 20, 2015 – The Supervisory Board of Lenzing AG appointed Stefan Doboczky as the new Chairman of the Management Board (CEO) of Lenzing AG. Mr. Doboczky will assume his new function on June 1st 2015. He takes over from Peter Untersperger, who will step down from his function as CEO per 31 May 2015 at his own request prematurely.

Mr. Doboczky, Austrian, brings to Lenzing a broad international management experience and extensive expertise in Asia. Since 1998 he has worked in various management positions for the Dutch Life Science & Material Science group Royal DSM in Europe and Asia. In his current role as Member of the Managing Board he has been responsible for the successful strategic repositioning of the global pharmaceutical businesses, for Corporate Operations & Responsible Care, as well as for the corporation’s growth agenda in the Asian markets. Mr. Doboczky holds a PhD in chemistry from the TU Wien and a MBA from Swiss Business School IMD .

Hanno Bästlein, Chairman of the Nomination Committee of the Supervisory Board of Lenzing AG, said about the appointment of the new CEO: “With his international industrial expertise, his close to ten years of management experience in Asia and his strong technical background, Stefan Doboczky will strengthen the Management Board team and is ideally suited to lead the Lenzing Group towards further growth.”

Source: Lenzing

Jumbo Tencel plant doing well - 1997 projection was right (2014)

Proud of the successful half-year track record of the new TENCEL® fiber plant in Lenzing: TENCEL® Plant Manager Franz Bauhofer, Board Member Robert van de Kerkhof (CCO) and Head of TENCEL® Operations Andrew Ronchetti.

As of the end of 2014, total annual TENCEL® production capacity of the Lenzing Group amounts to about 220,000 tons manufactured at the Austrian sites in Lenzing and Heiligenkreuz, in Mobile, Alabama in the USA and in Grimsby, Great Britain. Thanks to the new “jumbo production line” at the Lenzing site, investment costs could be maintained at a very competitive level of approximately EUR 150 mn (or about EUR 2,200 per ton of capacity). This gives Lenzing the opportunity to achieve a further competitive scaling of TENCEL® fibers as a universally deployable textile and nonwoven fiber.  

(*Andy Ronchetti, then in Courtaulds Research, was present at Courtaulds Fibres 3rd Oct 97 Strategic Review of Tencel where the projected costs of a future jumbo Tencel plant were estimated to be $2500/AT by Dave Hignell and $3000/AT by Dave Watson.  Taking the mid-range $2750 figure, that just happens to be Lenzing's €2200/AT at today's exchange rates. Ed.)

More Layoffs at Lenzing (2014)

The Lenzing Group is resolutely and systematically counteracting the ongoing difficult market conditions in the global fiber industry on the basis of its cost optimization program as it reported on the occasion of publishing its business results for the first three quarters of 2014. The organizational optimization measures launched one year ago at all sites and in all business areas are having a positive impact. The results achieved up until now are encouraging but by far insufficient to offset the decline in viscose fiber selling prices on the international marketplace.

Lenzing continues to anticipate good volume demand for all man-made cellulose fibers. However, fiber selling prices on the global market are not expected to recover in upcoming quarters. This development is also attributable to the substantial decline in polyester fiber prices as a result of the massive oil price decrease, and the expected longer-lasting period of low or at least volatile cotton prices as a consequence of the surplus supply of Chinese cotton.

For these reasons, the Lenzing Group will not implement any major new projects at the Lenzing site or abroad in the foreseeable future which are designed to expand its viscose fiber production capacities. The investment volume of the company will be adjusted to reflect the current market situation and will be significantly reduced in the subsequent years. This should contribute to improving the supply situation on the international viscose fiber market, which the company would like to sustainably profit from in its role as one of the world’s largest producers.

Due to the successful completion of the new TENCEL® investment volume, technical planning and production capacities cannot be maintained at current levels, especially at the Lenzing site. This necessitates a reorganization of Lenzing’s internal engineering and maintenance business areas and its subsidiary Lenzing Technik GmbH. Organizational structures in these areas have to be adjusted to future requirements. All in all, the restructuring measures will impact up to 250 jobs (including one-third temporary staff), mainly at the Lenzing site. The distribution of the job cuts among the various sites will be determined fiber plant in Lenzing and the reduced by the beginning of 2015 within the context of a project which is already under way. In this connection, Lenzing will try to avoid layoffs and strive to reach a mutually acceptable solution with the affected employees as it succeeded in doing within the context of the first cost optimization program.

During initial talks on this issue held with the Lenzing Works Council, Lenzing agreed to extend the current redundancy program (social plan) and to offer the possibility for employees newly affected by the downsizing to transfer to the Lenzing Labor Foundation.

At the same time, Lenzing is working on a strategic reorientation of its subsidiary Lenzing Technik GmbH to enable it to focus more strongly on the external market in the future.

For more information please contact:
Angelika Guldt Stephanie Kniep
Head of Corporate Communications Head of Investor Relations
Phone: +43 (0) 7672 701-2713 Phone: +43 (0) 7672 701-4032
E-mail: a.guldt@lenzing.com E-mail: s.kniep@lenzing.com

Lenzing report record sales now the new Tencel plant is on line (2014)

Lenzing reported very high production volumes in the first three quarters of 2014, operating all its fiber production facilities at full capacity. A new record sales volume of 706,900 tons was achieved (Q1-3 2013: approx. 660,000 tons). This is all the more remarkable given the fact that all industrial plants in the greater Nanjing area of China, including Lenzing, were forced to reduce production due to the Nanjing 2014 Youth Olympic Games.

The new sales record is mainly attributable to the successful ramp-up of the new TENCEL® fiber production facility at the Lenzing site in Upper Austria towards the middle of 2014. Sales of the Segment Fibers in the first three quarters of 2014 totaled EUR 1,285.4 mn, comprising a drop of 3.1% from EUR 1,326.5 mn generated in the first three quarters of 2013. Segment EBITDA in the first nine months of 2014 amounted to EUR 155.1 mn, 15.8% lower than EUR 184.1 mn in the previous year, whereas segment EBIT of EUR 64.6 mn comprised a 35.5% decline from the prior-year figure of EUR 100.1 mn. 

Specialty fibers accounted for about 39% of total sales revenue in the Segment Fibers.  Lenzing continued to generate very attractive price premiums for the specialty fiber Lenzing Modal® in contrast to viscose fibers, against the backdrop of ongoing high demand. The price premiums achieved for TENCEL® fibers remain at a very attractive level, although prices for new samples and market development projects declined somewhat in individual cases. 

The focus of Lenzing’s marketing activities in the third quarter was on further developing the market for TENCEL® fibers. The market penetration efforts to promote the use of Lenzing fibers in denim have met with success, as demonstrated by the fact that the most prominent jeans manufacturers are integrating TENCEL® fibers in their fashion collections. Demand for TENCEL® bed linen remained strong, especially on overseas markets. In the home textiles segment, Lenzing promoted the use of TENCEL® fibers in towels, opening up new application possibilities with large American retail chain stores. 

A new study in the nonwovens segment confirms that TENCEL® BIOSOFT fibers

significantly enhance wearing comfort when used as a top sheet for incontinence pads.

This extract from the Lenzing quarterly report confirms the successful start of the 67,000 tonne/year Tencel plant in Austria. (A producer-blend of Tencel and cotton is apparently taking the bulk of the new Tencel production and allowing cheaper cottons to be upgraded.  Such a blend was part of the strategy for moving the sudden surplus of Tencel when the Courtaulds Mobile plant started in 1992.  It's also nice to hear the fashion for Tencel in denim - the original launch market - is returning.)

Source: Lenzing Interim Report - 01/09/2014

Lenzing starts world’s largest Lycoell fibre plant (2014)

This appeared on the Fibre2Fashion website and Courtaulds gets a rare mention. It will be interesting to learn where the 67,000 tonnes of Tencel from the new line said to be "running at full capacity" is being sold.

September 19, 2014 (Austria)


Within 24 months of starting construction, Austria based Lenzing AG has started commercial production at the world’s largest production facility for Lyocell fibers.

The plant which is now running at full capacity was set up at an investment of € 150 million and will produce Tencel fibre.

Lenzing said the setting up of the Tencel production plant in Austria went according to plan, both financially and in terms of time.

This new factory in Lenzing is the first in the industry to feature a single production line with an annual nominal capacity of 67,000 tons.

The new plant design incorporates lessons learnt with experience from three existing Lenzing Group Tencel production plants in Austria, USA and UK.

As a result, the new Tencel plant in Lenzing represents the world’s leading generation of Tencel technology, Lenzing explained.

Lenzing said with Tencel, it offers the industry a fiber material for the future and in terms of ecology and innovative strength, the fiber represents a milestone.

The fiber producer said, “A plethora of textile applications has been derived from the new generation of fibers from activewear to denim and shirting in which Tencel has proven its strength.”

“Until now woven products made from Tencel were promoted. However, new Tencel fibers for knitwear applications lead us to perceive tremendous potential in the fashion knitwear segment”, Robert Kerkhof, CCO at Lenzing said.

“Thanks to its bright colors and more attractive appearance, Tencel will set a new standard in this sector too,” he added.

The search for a cellulose fiber with an ecological and economic production process led researchers to Lyocell.

Lenzing and the former fiber producers, Courtaulds, nurtured Lyocell to market maturity as a result of intensive research work and their strong belief in the new fiber of the future.

The first production facility was started in 1992 and in 2004 Lenzing was able to pool all of its resources as a result of buying the Tencel brand and capitalize on this expertise in fiber production.

As a result of purchasing the Tencel brand name, Lenzing was able to market the entire Lyocell business under this well known fiber name. (AR)

Source: http://www.fibre2fashion.com/

Tencel Jumbo starts at Lenzing (2014)

The Lenzing Group has successfully initiated production at its new TENCEL® jumbo production facility, the largest in the world, at the Lenzing site in Upper Austria. The plant is in the midst of a stable ramp-up phase. The feedback on the part of the market is very positive.

“We are more than satisfied with the progression of the start-up curve. Based on the production process in the past days and weeks, we have reasonable grounds to believe that this latest generation of TENCEL® technology will completely fulfill our expectations”, says a confident Lenzing Chief Executive Officer (CEO) Peter Untersperger. “The successful start-up of production operations is a technological milestone for TENCEL®, the fiber of the future, and for the entire Lenzing Group. We are optimistic that we will be able to achieve the planned production target of 30,000 tons by the end of 2014. This new TENCEL® facility is decisive to ensure the long-term viability of fiber production at the Lenzing site and the basis for future investments in all markets”, adds Lenzing’s Chief Operating Officer (COO) Friedrich Weninger.

This factory comprises the first time in which a single production line with an annual nominal capacity of 67,000 tons was installed. Previous TENCEL® production lines were usually only one-quarter as large. The new plant design incorporates lessons learned from the longstanding experience of three existing Lenzing Group TENCEL® production plants located in Austria, USA and Great Britain. As a consequence, the new TENCEL® plant in Lenzing represents the world’s leading generation of TENCEL® technology. The new design of the jumbo production line also enables investment costs to be maintained at a very competitive level of approximately EUR 150 mn (about EUR 2,200 per ton of capacity). This comprises the decisive approach to 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.

With a construction time of 24 months, Lenzing completely adhered to both the budgeted investment costs as well as all timetables. The TENCEL® production in Lenzing secures 140 jobs at the Lenzing site.

Thanks to the new plant, annual nominal TENCEL® production capacity of the Lenzing Group will rise from 155,000 tons p.a. to about 220,000 tons. In this way Lenzing will further expand upon its global market leadership for TENCEL® fibers and offer its global customers new expansion opportunities in both the textile and nonwovens segments as well as new and innovative applications. “The related market development activities have already been in full swing for quite a few months”, states Robert van de Kerkhof, the Chief Commercial Officer (CCO) of Lenzing responsible for the fiber business. Moreover, new technical applications will be opened up and massively expanded in the years to come.

Source:  Lenzing Press Release

More savings needed to ensure viability long-term (2014)

Due to the very unsatisfactory development of prices on the global market for viscose fibers, the Lenzing Group will be implementing additional cost reduction measures. Today, the Management Board informed employees at the facilities in Lenzing about the necessity of further measures to secure the long-term competitiveness of the Lenzing Group. In relation to this, the Management Board today announced a wide-ranging review of the Group strategy, the results of which should be available by the end of 2014.

As noted in the report on Q1 2014, extensive measures were already successfully implemented within the framework of the cost optimization program “excelLENZ 2.0”. Thanks to this program, it was possible to prevent layoffs in Lenzing, despite the staff reduction measures already carried out. Nevertheless, in light of the current level of fiber prices, the savings of more than EUR 60 - 80 mn for 2014 are still not enough to ensure the long-term profitability of cellulose fibers production at the European facilities. The targeted cost reductions of up to EUR 160 mn by 2016 must also be increased due to the market development.

CEO Peter Untersperger: “In light of the structural changes in competitive conditions, our goal is to lead the Lenzing Group back to its previous competitiveness. Further cost optimization is an inevitable part, but – within the framework of strategic restructuring – we will also decide to which products we can manufacture over the long run at which sites with the highest levels of quality and at optimized costs. There can be no taboos. Everything must be looked at.”

Furthermore, a strategy group was established by the Management Board. This group will look at the development of new specialty fibers for Lenzing AG, the production and market positioning which will help to secure the unique selling proposition and profitability, also of the Austrian sites.

Both the works council and political decision-makers will be informed about the difficult market situation and their support has been requested in this process.

Source - Lenzing Press Release

Journalists at 1986 Press Conference.

This "official" photo taken on the steps of 101 Lockhurst Lane just re-surfaced. 

The occasion was a Viscose Europe Press Conference in June 86 at which the first public presentations of the Tencel project were given.

Robert Smith and I represented Courtaulds Research and Lydia Cain is next to David Wilkinson.  (Please add a comment if you recognise any others.)

Other photos of the same event are at Tencel debuts as Genesis

Tencel Short-Cut for Flushable Wipes

The nonwoven wipes market was a target for Tencel product development from the start in the late '80's.  Since then it has grown steadily and now consumes around a million tonnes of fibres, about half of which are man-made cellulosics.

Courtaulds Research installed a Neue Bruderhaus wet-lay system to feed short-cut Tencel into a Honeycomb hydroentangler in the late 1980's and upgraded this to a high-pressure Perfojet (now Andritz) hydroentanglement system in the early '90's.  The flushable nature of lightly fibrillated and entangled wet-laid short-cut Tencel was discovered at that time. Commercialisation commenced C H Dexter (Windsor Locks) in 1991 and continued with Ahlstrom-Lystil (now Suominen) in 1994.  The recent Lenzing press release (below) continues the story.
......................................................................................

TENCEL® fiber with a “flushable” function

Wednesday, 09. April 2014

Pulp

TENCEL® fiber

TENCEL® short-cut

TENCEL® - ideal for wipes and care wipes

With the cellulose fiber TENCEL® as a short-cut type, Lenzing is satisfying the trend of the times in the nonwovens industry. The fiber is biodegradable and strong and yet it is still “flushable”, ideal for high quality wipes and care wipes.

Convenience and sustainability are not a contradiction with TENCEL®The market for wipes will grow by 6.5% per year.1 In an increasing number of households one can find practical wipes for hygiene and care applications and the trend is on the rise. Many wipes are disposed of in the toilet whether they are “flushable” or not which leads to problems with blockages in public sewage systems. This is the very reason why industry is looking into this problem and demanding new production technologies. With TENCEL®, Lenzing supplies a raw material which is of botanic origin, contains no additives, and is biodegradable. When processed in the right way, practical wipes can be produced which comply with the convenience mindset of consumers and are, at the same time, biodegradable and environmentally friendly.

More quality with TENCEL® for a wipe with a “flushable” function
“Flushable” wipes from TENCEL® stand out due to their high quality. Due to the enormous fiber strength, the TENCEL® wipe is particularly tear-resistant in contrast to the materials conventionally used such as pulp and short-cut viscose. The high strength of the TENCEL® fiber also reduces the use of binding agents which are mostly made of acrylic, latex or bi-component fibers. Another advantage of TENCEL® compared to short-cut viscose is that due to the higher strength profile, fewer fibers are required for a comparable quality than in a wipe of short-cut viscose.
“Quality does not, however, only mean enhanced service properties but also refers to the skin-friendly attributes of TENCEL®. The fiber has already demonstrated in tests that it is particularly well suited to sensitive skin,” Dr. Dieter Eichinger, head of the Hytec market segment (hygiene, home and technical textiles) at Lenzing explains.
“The exceptionally smooth surface of TENCEL® makes the fiber ideal for the skin and prevents skin irritations. For this reason, wipes of TENCEL® are particularly smooth and gentle on the skin,” Eichinger argues.

TENCEL® perfect for new technology The merging of paper and spun-laced technology will revolutionize the market for wipes. Short-cut TENCEL® is ideally suited to this application and due to its properties, it will play a key role in the development of “flushable” wipes particularly with this technology. “Here the fiber strength of TENCEL® also plays a vital role,” Eichinger is positive.

Certificates confirm the sustainability of TENCEL®
Environmental certificates such as the EU-Ecolabel, Nordic Swan, OK biodegradable from Viocotte or Ecocert demonstrate the environmentally responsible production of TENCEL®. ”In particular the botanic origin of TENCEL® and the sustainable production of the fiber fit perfectly with the current consumer demands and are vital for the production of disposable wipes,” Elisabeth Stanger, Head of Hygiene at Lenzing, is convinced.

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1 _{The Future of Flushable Nonwovens Market Forecasts to 2018, Philip Mango Source: Smithers Apex}

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_{Click here for a comprehensive review of flushability developments before 2004} 

Tencel marketed as Eurocel™? (2014)

Due to the sustainable and high quality production of fiber material at Lenzing and Sandler’s innovative strength, a wipe has now been created which is extremely skin-friendly.

There's no mention of Tencel in the following release from Lenzing but it looks like another marketing angle being tried in advance of the new 67,000 tonne lyocell plant coming on stream in Austria and the increasing availability of Chinese lyocell, including a version from bamboo pulp. ("combination" is the only suggestion that its a blend of Tencel with viscose.)  A similar idea was tried for textiles when the Lenzing Lyocell process went into production in 1998 - ProViscose and Pro Modal were then the brands.

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Eurocel™ - new fiber combination with a European foot print

Just in time for the fair Index, April 8.-11. 2014, Geneva, Lenzing is presenting a new fiber concept for the nonwovens industry.

European Innovation 
Eurocel™ is a European product through and through. The cellulose fibers used are made in Austria in an environmentally responsible process. Eurocel™ is based on the idea of offering a high quality European product to consumers. Sandler, a German nonwovens manufacturer partner, adopted the idea of Eurocel™ and developed a new product for their customers. “We are well known for quickly putting our ideas into practice and we immediately recognized the potential of Eurocel™ for the European market,” Dr. Ulrich Hornfeck, member of the Sandler management board, explains. Due to the sustainable and high quality production of fiber material at Lenzing and Sandler’s innovative strength, a wipe has now been created which is extremely skin-friendly. The advantages of Eurocel™ go very well with the concept of the German nonwoven manufacturer, Sandler, who have their company headquarters at the center of Europe. “Production in Europe translates into shorter delivery distances which means fewer carbon dioxide emissions during transportation and thus a lower carbon footprint,” Hornfeck comments. Apart from the logistical advantages, Hornfeck also names the improved product properties, such as the improved volume, the higher tear resistance and reduced elongation.

Future Europe
“The goal is to persuade other nonwoven manufacturers of this European idea and offer a convenience care product which complies with today’s consumer demands: sustainable, natural, and high quality,” Elisabeth Stanger, head of the Hygiene Business Segment, explains.
Eurocel™ can be certified with Oeko-Tex Standard 100, ISO 9001, ISO 14001, OHSAS 18001, European Ecolabel, Compostable (DIN CERTCO), Vinçotte OK compost HOME, Vinçotte OK compost, Vinçotte OK bio-degradable SOIL, Medically tested / ITV Denkendorf, US BPI compostable certificate and Food Contact Compliance Certification.

Tencel Skin gets INDEX Marketing Award (2014)

Most Original Marketing Campaign: Industry prize for Lenzing at the INDEX™14 Trade Fair in Geneva

Tuesday, 15. April 2014

from left to right:
Dieter EICHINGER,
Elisabeth STANGER, Peter UNTERSPERGER

Lenzing CEO Peter Untersperger accepted the prize at the INDEX™14, the largest specialized trade fair for nonwovens held in Geneva from April 8-11, 2014

The prize was awarded by EDANA, the international professional association for the nonwovens industry, which honors the most outstanding achievements in the sector each year.

Nonwovens represents the technical term for nonwoven materials used in the production of hygienic, medical and cosmetics products. Consumers are aware of such products, for example baby wipes made of Lenzing fibers. Nonwoven products are also manufactured from oil-based fibers such as polyester. The advantages of Lenzing fibers in the nonwovens business include their production from the natural raw material wood and above all the biodegradability of the material.

TENCEL® Skin is a specialty fiber developed by Lenzing for this segment, and stands out for being so skin-friendly. The EDANA jury justified its award for the TENCEL® Skin marketing campaign “particularly due to the high aesthetic and artistic standards of the campaign video, which clearly and vividly demonstrates the advantages of the fiber to people and simultaneously explains the most important properties of the fiber”.

“TENCEL® Skin was specifically developed for use in facial masks, which are especially popular on the Asian market. The smooth fiber surface creates a silky feeling” states Elisabeth Stanger, Global Director Business Development Hygiene. “The unique structure provides optimal absorbance and ideal conditions for skin nourishing lotion with which the material is enriched. TENCEL® Skin is of botanic origin, and is produced by Lenzing from the sustainable raw material wood.”

EIB loans Lenzing Eu100M for Tencel (2014)

Monday, 03. February 2014

Peter Untersperger, CEO Lenzing, Wilhelm Molterer, Vice President of the EIB and Patric Thate, Head of Finance Lenzing

With a EUR 100m loan, the European Investment Bank (EIB) is co-financing the research and development (R&D) activities and investment in TENCEL® fibre production of Lenzing AG. This company, which specialises in the industrial manufacture of cellulose fibres, is implementing a multi-annual development programme for new, high-quality TENCEL® products. The loan contract was signed by the EIB and Lenzing today in Vienna.

The TENCEL® fibres manufactured industrially from wood (a renewable raw material) are used primarily in the textile industry, but also for nonwoven materials and technical applications. Lenzing is the only manufacturer in the world that has mastered the technology for producing this latest generation of cellulose fibres on a large industrial scale. These fibres are particularly eco-friendly: TENCEL® fibres leave a much smaller environmental footprint than cotton, for example. Lenzing markets these fibres under the brand name TENCEL®. Their qualities include high wet and dry strength, softness and optimum moisture absorption capacity.

The loan provided by the EIB will contribute to the financing of a multi-annual R&D programme undertaken by the company, which includes the construction and operation of new research facilities and pilot plants and the deployment of process innovations. Most of these activities will be carried out at the company’s site in Austria.

The loan is being provided to Lenzing under a financing programme implemented jointly by the EIB and the European Commission. This so-called Risk-Sharing Finance Facility is an innovative instrument for sharing credit risks. It is aimed at improving access to external financing for private companies and public institutions promoting projects in the fields of R&D, demonstration and innovation. The financing of R&D activities is one of the EIB’s top priorities. In the past year alone, its total lending in this area amounted to EUR 15.6bn.

At the signing of the loan contract, Wilhelm Molterer, EIB Vice-President responsible for lending operations in Austria, stated, “Today, Lenzing is a technology leader in the field of man-made cellulose fibres, thanks in part to its ambitious research and development activities. It is companies like Lenzing that are making a decisive contribution to Europe's innovative and competitive strength. Financing of industrial research is one of the EIB’s core tasks.

Lenzing’s CEO, Peter Untersperger, commented, “This partnership with the European Investment Bank is a great tribute to the achievements of our company, particularly our research and development work. We are already operating three pilot TENCEL® plants in Europe in order to continue improving the technology and its range of applications. We still see considerable potential for growth in the future which must be explored now, as the demand for high-quality fibres manufactured in environmentally compatible processes will continue to increase.”

(Lenzing Press Release - Feb 3rd)

Tencel or Lyocell in Bed-linen (2014)

Having just bought sheets, pillow cases and duvet covers with a "lyocell/cotton" label  (50/50) at IKEA in Coventry it was interesting to read this press release from Lenzing.  Do IKEA see no value in using the "Tencel" brand or are they getting "lyocell" at a lower price?  Whatever the fibre, the new sheets do feel superior.

The TENCEL® fiber is used in many applications centering on beds – starting with mattresses and mattress covers through to comforters and bed linens. When used in bed linens, the TENCEL® fiber properties are shown off to particular advantage. Since the fabric is in direct contact with the skin,comfort is enhanced by TENCEL®’s excellent skin-sensory properties and superior moisture management. The advantages of TENCEL® bed linens are appreciated by the global end consumer and can be further extended. More than 100 manufacturers have TENCEL® bed linens in their product lines and are certified according to Lenzing’s quality criteria. “The greater share of manufacturers, 70% comes from Asia and 30% of the manufacturers are from Europe and Turkey.