Lenzing Expands Production In Austria, Indonesia

Austria-based viscose fiber producer Lenzing AG plans to invest 151 million euros (US$221.8 million) to expand capacity at its two largest production facilities, located in Austria and Indonesia.

The company will invest $45 million euros (US$66.1 million) to add 15,000 tons of capacity at its largest manufacturing facility in Lenzing, Austria, bringing the total capacity at that location to 250,000 tons. At its Purwakarta, Indonesia-based PT South Pacific Viscose facility, Lenzing will invest 106 million euros (US$155.7 million) to add a fourth production line to increase capacity from 155,000 tons to 220,000 tons, as well as to improve infrastructure and optimize production.

“The demand for Lenzing fibers, particularly in Asia, has recently been very positive,” said Thomas Fahnemann, chairman of Lenzing’s Management Board. “In the medium term, we view the continuing economic growth of the region, the rise in prosperity and its growing population as indicators of very good market opportunities.”

Fahnemann said Asia is the company’s primary growth market, noting potential for additional capacity expansion in that region, especially in China, where it opened a production facility last year. Lenzing also plans to build a fiber-production plant in India.

Lenzing produces 560,000 tons of viscose fiber annually at six fiber production facilities worldwide. With the announced expansions, along with a previously announced expansion at its Tencel ?? facility in Heiligenkreuz, Austria, the company’s annual production capacity will total 660,000 tons.

Source:Textile World