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Lenzing: Capacity Expansion Continues

December 14, 2009

Upgrades underway in Austria, Thailand, the U.K.

Cellulosic fibers producer Lenzing Group will continue to expand production capacity in 2010 by investing a scheduled €120 million in its European and Asian sites. The projects will be completed during the next two years. The key elements are the further extension of pulp production at the Lenzing site in Austria and a further extension of fiber production at the Heiligenkreuz site, also in Austria as well as remodeling the Tencel site in Grimsby, U.K.

Peter Untersperger, chairman of the Lenzing management board, comments on these latest strategic decisions: “We are expecting continuing strong demand for Lenzing fibers over the coming years. By these projects we as the world market leader intend to secure and enhance our lead in terms of quantity as well as quality. And the message is clear: the Lenzing Group is going to shape fiber future jointly with its customers”.

In a couple of weeks the fourth production line of Lenzing's Indonesian subsidiary PT. South Pacific Viscose (SPV) will go operational. After two years of construction activity and a total investment of about $150 million, fiber production capacity will be increased from about 160,000 to 220,000
tons per year. But, Friedrich Weninger, management board member in charge of fiber production, noted that the new capacity will not satiate demand so already debottlenecking is planed to begin immediately after start-up to increase SPV production capacity by another 18,000 tons to 238,000 tons per year.

In the special fibers sector Lenzing plans to expand production at the Tencel site at Heiligenkreuz, Austria by 10,000-60,000 tons per year.

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