Lenzing Ups Focus on Nonwovens

Lenzing is taking efforts to grow and strengthen its nonwovens business under a new strategy dubbed,“Grow Nonwovens, Reset Textiles.” The plan includes improvements to Lenzing’s global nonwovens fiber manufacturing sites, a decrease in capacity standard viscose fibers for textile applications and a 600 person global reduction in headcount, which is expected to save €120 million in annual savings.

In addition to the ongoing sale of its Indonesian viscose site, PT South Pacific Viscose, Lenzing will phase out production at its fiber plants in Heiligenkreuz, Austria by end of 2026 and in Grimsby, U.K. by end of 2027. At the same time, Lenzing will continue to focus on investment in its nonwovens business. It has already announced investments of €15 million in November 2025 and an additional €8 million in June 2026 to increase its nonwovens production capacity in Lenzing, Austria. Additionally, Lenzing is strategically upgrading its fiber production site in Mobile, AL into a state-of-the-art specialty nonwovens facility. Future efforts are expected to include investments in additional production capacity for Tencel Modal fibers, both in China and in Austria

These investments  will expanding Lenzing’s existing portfolio and developing next-generation fibers for nonwovens applications, especially in the hygiene segment, supported by long-term contracts with leading companies in the nonwovens industry.  Lenzing is also advancing the commercialization of Lenzing Nonwoven Technology in collaboration with strategic partners, providing competitive and sustainable alternatives for the market. 

“With “Grow Nonwovens, Reset Textiles”, Lenzing is taking decisive steps to reposition the company for long-term success in a fundamentally changing market environment. By combining a streamlined premium product portfolio, improved competitiveness and a strong proprietary innovation pipeline, we are creating the foundation for profitable growth and a more focused, resilient Lenzing. At the same time, this transformation will strengthen our main production site in Lenzing, Austria, and support a sustainably profitable and competitive future for the site.,” says Georg Kasperkovitz, CEO of the Lenzing Group.