The fiber innovation company is expanding its specialty fibers capacities by 35,000 tons within the next two years. Its existing sites in Austria and the U.K. will now have financial assistance to upgrade equipment and increase employment.
“We will invest more than 100 million euro ($111.45 million) over the next 20 months to expand production capacities for our high-quality botanic fibers, 70 percent at the Heiligenkreuz site and 30 percent at Lenzing,” said CEO Stefan Doboczky. “Given the strong market demand this expansion will help our customers in their growth plans as well as expanding our global market leadership position for specialty fibers.”
The investment at all three sites is the first step of Lenzing’s specialty fiber expansion program. From 2016 to 2017, funds from the investment will be allotted to its locations in Austria and the U.K., for optimal capacity ramp up. By the end of this year, customers will be able to access 10,000 tons of specialty fiber capacity from the program’s launch.
Score Ten, Lenzing’s new group strategy, has a goal of increasing its specialty fibers share to 50 percent of its total revenue by 2020. This year, specialty fibers only account for only 41.7% of total revenue.
Heiligenkreuz will also contribute to this revenue growth goal as well, since it will be a key location for future Tencel premium fibers development and add 25 full-time jobs. Lenzing will use its in-house engineering team, with the support of local construction companies and suppliers, to carry out this expansion project.