Austria-based cellulosic fiber producer Lenzing Group has announced it will invest additional
capital to expand one site and convert production at a second facility. The company will spend 55
million euros to more than double production at its Nanjing, China, plant, bringing capacity to
140,000 tons per year. In addition, Lenzing will invest 23 million euros to convert production in
Lenzing, Austria, from standard viscose fibers to modal fibers. The China expansion is expected to
take 18 months to two years to complete, while the changeover in Austria should be finished in 15
months. This investment is in addition to Lenzing’s recently announced expansion plans
To Invest 120 Million Euros On European, Asian Site Expansions,” January 12, 2010).
“The investment is a continuation of our consistent expansion policy: The value of the
Lenzing site as the world’s biggest producer of special cellulose fibers will grow — and doubled
capacity at the Nanjing site will meet the fast-growing demand for standard cellulose fibers in
Asia,” said Peter Untersperger, chairman, Lenzing management board.
“Modal has very much turned out to be a global export success over the past years,
particularly in Asia,” said Friedrich Weninger, Lenzing Board Member responsible for the fiber
business. “The project will develop and secure our special fiber strategy for the Lenzing site.
Integrated pulp production there enables optimized and decisive control of the production quality
parameters from beech to fiber required for special fibers and the site’s expertise in modal
production spans decades. Moreover, remodeling will be comparatively fast and cost-efficient.”
March 30, 2010