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Lenzing completes Austrian expansion

September 7, 2011

Tencel production capacity has increased to 60,000 tons per year.

The Lenzing Group has successfully completed its capacity expansion drive – which it initiated three years ago – at the fiber production facility located in Heiligenkreuz, Burgenland, Austria. Production capacity of the cellulose fiber Tencel was increased in several steps by 25,000 tons to 60,000 tons per year. A total of about €60 million was invested at the Heiligenkreuz site during this period, and the total number of employees working at the plant has risen to more than 200 people.

The conclusion of the capacity expansion project was celebrated at a recent press conference, where Burgenland’s Provincial Governor Hans Niessl spoke of Lenzing's strong presence in the region. “The Lenzing Group has proven to be a reliable partner to Burgenland. In the past 15 years, since the construction decision was initially made, Lenzing Heiligenkreuz has become one of the most important industrial firms in the federal province of Burgenland. Lenzing is a decisive driving force for the entire economic area of South Burgenland," Niessl said.

Management Board Member Friedrich Weninger, responsible for the global fiber business of the Lenzing Group, emphasized the significance of Heiligenkreuz for the Lenzing Group. “The Heiligenkreuz plant is an indispensable part of the Lenzing Group. Here we produce Tencel fibers, which are supplied to the entire world, particularly Asia, from Burgenland. This is proof of the quality and competitiveness of the products manufactured in Heiligenkreuz,” Weninger stated.

Tencel fibers produced by Lenzing Fibers in Heiligenkreuz are manufactured from pulp which is derived from the sustainable raw material wood. In the production process, cellulose is physically converted into a solution by means of a special chemical. Subsequently the fibers are spun, dried and pressed into bales for shipment.

The Lenzing Group is the only provider of Tencel fibers on an industrial scale in the world today. In addition to the Heiligenkreuz plant, Lenzing also manufactures Tencel fibers at two other sites: A plant dedicated to the textile industry in Grimsby, UK, and the Mobile, AL, USA, facility that focuses on nonwovens applications.

Lenzing intends to almost double its Tencel production capacity from 140,000 tons to about 275,000 tons by 2015.

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