The company said the decision is part of its aims to substantially increase its share of specialty fibers as a proportion of total revenue. The move to Thailand follows an expansion drive already underway in Lenzing and Heiligenkreuz, Austria, and also in Grimsby, U.K., and Mobile, Alabama.
Lenzing is establishing a subsidiary in Thailand and purchasing a commercial property in Industrial Park 304 in Prachinburi near Bangkok as part of building the new facility. In the coming months, the required permits and licenses are expected to be finalized, as will all technical planning. The selection of the site was based on its overall strong infrastructure, expansion opportunities and a sustainable biogenic energy supply. Similar to the plant in Mobile, the planned production facility will be constructed on the basis of the latest state-of-the-art technology and feature a capacity of up to 100,000 tons annually. This site will strengthen the worldwide lyocell network of the Lenzing Group and enable its global customers to source Tencel branded fibers from Europe, North America and Asia.
“The planned expansion underscores our commitment to support the business growth of our customers, which will result in their offering even more environmentally friendly products by using Tencel fibers,” said Lenzing chief executive officer Stefan Doboczky. “The expansion to Thailand represents the next consistent step in the implementation of our sCore TEN strategy as a means of increasing the share of specialty fibers and expanding our geographical footprint. With Asia accounting for 70 percent of total Lenzing Group revenue, it is logical that we will construct the next production plant for Tencel fibers in Asia.”