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Lenzing Plans Further Expansions

Lenzing AG, Austria, is implementing its fourth production capacity expansion since the beginning of 2010 to meet growing demand for its Tencel® and viscose fibers, adding more than 200,000 metric tons of capacity to several facilities at a cost of some 285 million euros total.

"The structural changes in the global textile fiber market, which are characterized by a tendency towards rising cotton price levels and an ever-increasing volatility of cotton quantities, as well as the increasing demand for man-made cellulosic fibers in nonwovens, lead us to continue to expect strong demand for Lenzing fibers over the next years," said Peter Untersperger, CEO, Lenzing.

The investments include 130 million euros at Lenzing's headquarters site in Lenzing, Austria, to build a 60,000-metric-ton Tencel production plant that will be supplied with pulp from that site's fully integrated pulp mill. In addition, a $30 million upgrade and modernization investment at its Mobile, Ala., Tencel site will add 50,000 metric tons of capacity to supply nonwovens manufacturers in the Americas.

In Asia, Lenzing will invest $130 million to add a fifth production line at its PT South Pacific Viscose subsidiary in Indonesia, bringing online an additional 80,000 metric tons of annual capacity. It also will invest $18 million to add 20,000 metric tons of capacity at its Nanjing, China, site.

Finally, the company will upgrade a specialty nonwovens fiber line at Lenzing at a cost of 17 million euros.

January/February 2011

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