EANS-News: Lenzing AG / Lenzing invests in new capacities for TENCEL(TM) Luxe

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New Products/Company Information

Highlights -

* Market success above expectations
* Product and market development accelerated
* Investment up to EUR 30 mn

Lenzing - The Lenzing Group is setting another milestone as a specialist for
extremely high-quality products made of the renewable raw material wood.
Capacities will be significantly expanded due to strong demand for Lenzing's
TENCEL(TM) Luxe filament yarn which was first launched on the market just a few
months ago. Lenzing will invest up to EUR 30 mn in a further pilot line at the
Lenzing site. Basic engineering for construction of the new facility has already
been initiated.

"Thanks to TENCEL(TM) Luxe, Lenzing is currently positioning itself in the
premium luxury market and is embedding the issue of sustainability there in
combination with superior aesthetics", says Robert van de Kerkhof, Chief
Commercial Officer of the Lenzing Group. "The fine filament yarn is comparable
to natural silk due to its airy feeling on the skin and the matte finish. It is
perfectly suited for very fine fabrics made exclusively from this yarn and as a
blending partner with silk, cashmere and wool", he adds.

"On the occasion of the launch of TENCEL(TM) Luxe filaments, the luxury brands
already realized what opportunities they would have by using this yarn made of
the renewable raw material wood. For this reason, demand is already so high that
we have decided to take an intermediate step to expand capacities before
building a large commercial production plant. The decision to construct a new
line will serve as the basis for generating a three-fold increase in capacity
compared to the previous volume. The additional capacity will be available to
customers at the end of next year", states Stefan Doboczky, Chief Executive
Officer and Chairman of the Management Board of the Lenzing Group. "The Lenzing
site was selected because research and technological know-how in plant
construction are connected in a special way, which will in turn enable us to
further develop this special product", Doboczky adds.

The new capacities will enable Lenzing to more effectively fulfil the needs of
customers for TENCEL(TM) Luxe filament yarn than in the past. At the same time,
Lenzing will press ahead with technical planning for a large-scale commercial
line at the Lenzing site.

This strong level of demand is further evidence of the Lenzing Group's
innovative strength. The yarn is opening up new markets for the company in the
eco-couture segment, thus contributing to the successful implementation of the
sCore TEN strategy.

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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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issuer: Lenzing AG

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

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