Lenzing is expanding its pulp production facilities with a major investment.
As part of its new corporate strategy sCore Ten, Lenzing is investing $110 million in its dissolving wood pulp production sites in Austria and the Czech Republic. The funding will be split to approximately $66 million for Lenzing and $44 million for Paskov, in order to modernize both facilities’ manufacturing equipment. New capacities of approximately 35,000 tons will also be added over the next 2.5 years.
“We aim to increase our own dissolving wood pulp production from currently 56 percent to 75 percent of the group’s requirements for the production of botanic cellulose fibers by the end of the decade,” Lenzing CEO Stefan Doboczky said. “The upgrade and expansion of our bio-refinery setup will underline Lenzing’s leadership as the most sustainable fiber producer.”
Lenzing’s bi-refinery approach is based on only using certified wood from nations in Central and Western Europe. The company’s mission is to turn carbon dioxide and sunlight into sustainable fibers, while ensuring that 100 percent of the wood components are used for fiber production and bio-energy. The investment is also a crucial component of Lenzing’s quality strategy, which certifies that the dissolving wood pulp is sustainable enough for botanic fibers.
This summer, Lenzing announced that it would expand its specialty fibers capacity to 35,000 tons by mid-2018. Approximately $77 million was invested in the Heiligenkreuz/Burgenland site, in addition to approximately $33 million in the Lenzing/Upper Austria site for the project.
Both investments reflect a long-term commitment to modernize Lenzing’s Austrian production sites. From now until mid-2018, Lenzing will invest a total of $176 million in Austria’s industrial sector.