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Lenzing Begins Construction Of New TENCEL® Production Facility

Austria-based cellulosic fiber producer Lenzing AG has begun construction of its new TENCEL® production facility in Upper Austria following completion of an environmental impact assessment for the facility and receipt of a building permit. The company is investing 130 million euros in the new plant - representing one of the largest individual industrial investments in Austria presently, Lenzing reports. Once the plant is operational, the company expects to add 110 jobs at the site as well as a large number of other jobs in the region. Construction is expected to be completed in two years.

The facility will serve as Lenzing's main specialty fiber production site, and will produce 67,000 tons of Tencel annually as well as Lenzing Modal® and Lenzing FR®. The company reports it selected Upper Austria for the site because of its geographical proximity to the European market and to the Tencel pilot plant; reduced energy costs owing to on-site power generation capabilities; and the availability of ample qualified personnel.

"With the Tencel plant the fiber technology of the future and the latest generation of man-made cellulose fibers is returning to our corporate headquarters in Lenzing," said Friedrich Weninger, member of the Management Board, Lenzing Group, and COO, Fiber. "The Lenzing pilot plant was the place where 20 years ago the first marketable lyocell fibers in the history of the Lenzing Group were produced. They are now marketed around the world under the Tencel brand name."

July 10, 2012