The Lenzing Group is substantially increasing its production of lyocell fibers to meet the strong demand for these products and further strengthening its position as an industry leader in specialty fibers. Over the next years, it plans to invest more than €1 billion in new production facilities for lyocell fibers. The first expansion phase of this ambitious growth plan, the construction of a state-of-the art lyocell fiber production plant in Prachinburi (Thailand), has now been approved. The plant will have a capacity of 100,000 tons and feature investments of approximately €400 million.

The plant sets a new milestone in the history of lyocell fibers and will be the largest site of its kind. Site grading at Industrial Park 304 around 150 kilometers east of Bangkok has been completed successfully and the investment is fully supported by the Board of Investment (BOI) of Thailand. Construction will start this fall and production will commence towards the end of 2021.

“Tencel lyocell fibers are considered a benchmark in ecologically responsible fibers. This expansion underscores Lenzing’s commitment to improve the ecological footprint of the global textile industry,” says Stefan Doboczky, chief executive officer of the Lenzing Group. “This investment in Thailand represents the next consistent step in the implementation of our sCore TEN strategy and will help to further transform Lenzing into a specialty fibers company."

Thailand has favorable trade agreements with the major Asian economic blocks. The selection of Industrial Park 304 in Prachinburi was based on its excellent overall infrastructure and the sustainable biogenic energy supply, which leads to low CO2 emissions to protect the climate. Over the coming years Lenzing will further expand at the site in Thailand, which has space for several plants. The investment in the first phase already includes the general infrastructure that will benefit future expansion. Lenzing will continue to look for potentially expanding lyocell production in other parts of the world as well.

“The project has received very good attention in the engineering market. Lenzing aims at implementing the project in a strategic partnership with an international engineering company also chosen for its capability to support Lenzing’s further organic growth worldwide. Integrated teams including an international and highly skilled Lenzing workforce will work together with the engineering contractor, which will be selected soon. Commissioning of the plant and start of production will take place in the second half of 2021,” says Heiko Arnold, chief technology officer of the Lenzing Group.