EANS-News: Lenzing AG / Lenzing invests in new TENCEL® fiber plant in the USA

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Company Information

- State-of-the-art 90,000 tons TENCEL® fiber plant to be built in
Mobile, Alabama - Investment of EUR 275 mn - operations to start in
the first quarter of 2019 - Strengthening of technical expertise by
creating a new Management Board Role - Heiko Arnold appointed Chief
Technology Officer

Lenzing - The Lenzing Group aims to increase the share of specialty
fibers as a percentage of revenue to 50 percent by 2020. Following
the previously announced expansion plans for Lenzing, Heiligenkreuz
(Austria) and Grimsby (Great Britain), the Supervisory Board of
Lenzing AG approved yesterday the investment for a TENCEL® fiber
plant in the USA. Lenzing now plans to construct a state-of-the-art
plant with a production capacity of 90,000 tons per year at its site
in Mobile, Alabama. The new facility will be the largest TENCEL®
fiber plant in the world, it will set a new milestone in the history
of lyocell fibers. The investment volume will total USD 293 mn (EUR
275 mn). The new plant will utilize the latest technological
standards and is scheduled to start in the first quarter of 2019.

The Lenzing Group currently has a worldwide production capacity of
222,000 tons per year of TENCEL® fibers. The new plant in Mobile plus
the already announced debottlenecking projects at the other TENCEL®
fiber sites will increase the total TENCEL® fiber capacity by more
than 50 percent by 2019. The decision to build this plant in the US
was supported by the good infrastructure at our Mobile site and
attractive energy costs.

"This investment represents another major milestone in the
implementation of our corporate strategy sCore TEN. It will bring us
a big step further to reach our target of 50 percent revenue from
specialty fibers by 2020", explained Lenzing CEO Stefan Doboczky.
"This expansion also underscores our commitment to all our TENCEL®
fiber customers, who continue to make their products even more
sustainable using TENCEL® fiber, the world's most sustainable botanic
fiber," added Doboczky.

The disciplined implementation of the Lenzing's expansion program is
essential for driving the Lenzing Group's organic growth agenda.
Therefore it was decided to create a new Management Board role,
pooling together the key technical, operational and engineering
responsibilities. The Supervisory Board of the company appointed
today Heiko Arnold as the new Chief Technology Officer. In addition
to a strong scientific and technical education, Arnold has gained
many years of experience with BASF in the realization of major
investment projects and continuous operational improvements as well
as extensive know-how in Research & Development. He will be
responsible for all technical departments in the Lenzing Group.

"We are pleased to welcome Heiko Arnold, a further expert with broad
international experience, to Lenzing's Management Board team",
commented Hanno Bästlein, Chairman of the Lenzing Supervisory Board.
"Lenzing is on a successful, dynamic growth course with the
development and implementation of the new sCore TEN corporate
strategy, and that makes an increase in the Management Board to four
persons a reasonable step. His 15 years of experience in Asia, in the
realization of major investment projects and in operational
excellence make Arnold a perfect match for the challenges faced by
Lenzing", explained Bästlein.

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Further inquiry note:
Lenzing AG
Mag. Waltraud Kaserer
Vice President Corporate Communications & Investor Relations
Tel.: +43 (0) 7672 701-2713
mailto: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