EANS-News: Lenzing AG / Lenzing invests EUR 100 mn in pulp production

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Company Information/Investment

Lenzing invests EUR 100 mn in pulp production

Lenzing/Vienna, 11.10.2016 - The Lenzing Group will expand and
modernize its existing dissolving wood pulp production at the sites
in Lenzing/Austria and Paskov/Czech Republic. At a press meeting in
Vienna today, Lenzing CEO Stefan Doboczky announced a total
investment program of EUR 100 mn, approximately EUR 60 mn of it in
Lenzing and almost EUR 40 mn in Paskov. Additional new capacities of
around 35,000 tons will be added over the next 2.5 years.

"With these investments, we are taking another step in the
implementation of our new corporate strategy sCore TEN," said Stefan
Doboczky. "We aim to increase our own dissolving wood pulp production
from currently 56% to 75% of the group's requirements for the
production of botanic cellulose fibers by the end of the decade. The
modernization will lead to more efficiency of our plants. The upgrade
and expansion of our bio-refinery setup will underline Lenzing's
leadership as the most sustainable fiber producer."

Lenzing's bio-refinery concept is based on using only certified wood
from countries in Western and Central Europe. It is an essential part
of Lenzing's mission to turn CO2 and sunlight into high value fibers,
as it ensures that 100% of the wood components are used to produce
fibers, bio-chemicals and bio-energy. This investment is also an
essential part of Lenzing's quality strategy, as the high quality of
our botanic fibers depends on the quality of the dissolving wood
pulp.

In August 2016, Lenzing announced a capacity expansion for specialty
fibers of 35,000 tons by mid-2018. Roughly EUR 70 mn will be invested
in the site in Heiligenkreuz/Burgenland and approximately EUR 30 mn
in Lenzing/Upper Austria as part of this project. The new pulp
investment program will be implemented in addition to these
investments.

These investments are yet another long-term commitment of the Lenzing
Group to the Austrian production sites. In the next 2.5 years,
Lenzing will therefore invest a total of EUR 160 mn in Austria.
Lenzing is thus once again one of the leading industrial investors in
Austria.

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For more information, please contact:
Waltraud Kaserer Stephanie Kniep
Vice President Corporate Communications Head of Investor Relations
& Investor Relations Phone:+43(0)7672 701-4032
Phone: +43 (0) 7672 701-2713 E-Mail: s.kniep@lenzing.com
E-mail: w.kaserer@lenzing.com

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

Original-Content von: Lenzing AG, übermittelt durch news aktuell