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Lenzing announces large-scale investment

February 14, 2013

New line will add specialty fiber production to Lenzing HQ

Lenzing is building what it says is the most modern fiber production line in the world in Lenzing, Austria. The combined expertise and technologies of Lenzing and the Tencel Group, which were recently merged, are being applied for the first time in the construction of the state-of-the-art Tencel plant.

“Tencel represents the greatest technological innovation in the man-made cellulose fiber industry since the invention of the Viscose fiber around 100 years ago,” says Dieter Eichinger, vice president business unit textile fibers, Lenzing AG. “The developments of the last twenty years are just the beginning of a success story which will continue for many decades to come. Tencel uniquely answers the demands for competitive production costs relative to other fibers with the demands for sustainable production."

An investment of €130 million and a 24-month construction time frame have been planned for the Tencel plant. The new Lenzing fiber plant will have a capacity of 64,000 tons per year. In addition to the specialty fibers Lenzing Modal and Lenzing FR, Tencel will also be produced at the new site in Lenzing. Tencel is currently only produced at the Lenzing sites in Heiligenkreuz (Austria), Grimsby (UK), and Mobile (U.S.). As a result of erecting the Tencel plant in Lenzing, the site will be expanded to become the central location for the Lenzing group’s specialty fibers. The attractive energy costs that result from the onsite energy generation, the skilled workforce, and proximity to Lenzing’s central research facilities including the Tencel pilot plant were all critical factors for expanding strategic operations in Lenzing the company says.

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