EANS-News: Lenzing AG / Lenzing Invests More Than EUR 100 Million in New Production Capacities for Specialty Fibers in Austria

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Company Information

* Expansion of capacities for specialty fibers by 35,000 tons by mid
2018 * About 70 mn Euro of investments in Heiligenkreuz and 30 mn
Euro at the Lenzing site * Strategic importance of Heiligenkreuz as
site for TENCEL® premium fibers underpinned

The Lenzing Group is expanding its capacities for specialty fibers.
Particularly the importance of the manufacturing facility in
Heiligenkreuz, Burgenland, is underpinned. Further investments will
be made as well at the production site in Lenzing. "We will invest
more than 100 million Euro over the next 20 months to expand
production capacities for our high-quality botanic fibers, 70% at the
Heiligenkreuz site and 30% at Lenzing", says Lenzing's 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 speciality fibers." As part of its new
group strategy sCore TEN, Lenzing set the target of increasing the
share of specialty fibers as a proportion of its total revenue to 50%
by the year 2020. Specialty fibers currently account for 41.7% of
revenue. The planned capacity expansion of 35,000 tons of specialty
fibers at the sites in Heiligenkreuz and Lenzing, as well as at the
site in Grimsby, Great Britain, is the first step of the announced
speciality fiber expansion program of Lenzing AG. Customers will be
able to take advantage of some 10,000 tons of specialty fiber
capacity already by the end of this year. The major part of
investments will be carried out in the years 2016 and 2017. The
Lenzing Group will fully utilize its in house engineering competence,
supported by local construction companies and suppliers for these
projects. The investment in Heiligenkreuz will create 25 new jobs
(full-time equivalents). Lenzing AG decided to start its investment
program for speciality fibers at its existing sites in Austria and
the UK as it allows fast capacity ramp up. The strategic role of the
Heiligenkreuz site as a key location of new types of TENCEL® premium
fibers developeddeveloped by researchers and application engineers in
Lenzing in cooperation with customers is strongly underpinned.

Further inquiry note:
Lenzing AG
Mag. Waltraud Kaserer
Tel.: +43 (0) 7672-701-2713
Fax: +43 (0) 07672-96301
mail to:w.kaserer@lenzing.com

end of announcement euro adhoc
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company: Lenzing AG

A-A-4860 Lenzing
phone: +43 7672-701-0
FAX: +43 7672-96301
mail: office@lenzing.com
WWW: http://www.lenzing.com
sector: Chemicals
ISIN: AT0000644505
indexes: WBI, ATX, Prime Market
stockmarkets: official market: Wien
language: English