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    Breaking News

    Lenzing Mothballs Alabama Lyocell Expansion

    Decision comes amidst threat of rising trade tariffs, higher construction costs

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    09.27.18

    Lenzing’s Managing Board concluded today to temporarily mothball the lyocell expansion project in Mobile, AL. The rising likelihood of increasing trade tariffs, paired with the potential surge in construction costs due to the buoyant U.S. labor market, have increased the risk profile of this project. Consequently, Lenzing will put all its effort to readjust the execution of its growth plan to meet strong market demand of its lyocell fibers. This includes an increased focus on the lyocell expansion project in Prachinburi, Thailand. Lenzing will reassess this decision on a regular basis but no substantial additional lyocell volumes, over and above the successful 25.000 tons expansion in Heiligenkreuz, Austria, will be added to the market in 2019 and 2020 by Lenzing.

     

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