Lenzing Sells U.S. Rayon Operation

According to "European Chemical News", 7-13 January 2002, Austrian fibers, plastics and chemicals group Lenzing has reacted to the current difficult market environment in the U.S. by selling a 61% stake in Lowland, TN based Lenzing Fibers Corp.



Lenzing retains a 39% stake in the subsidiary to continue to maintain its access to the U.S. nonwovens market. Financial details of the deal, signed on 31 December 2001, were not disclosed, but it is characterized as a partial management buyout..



ECN quotes Lenzing management board spokesman Jochen Werz as saying that current LFC management would stay in place, but with a replacement in the non-executive chairman position. "This will be a good deal for all parties involved," he said. "The new owners will benefit from our sound know-how, and Lenzing's future presence in the U.S. is also preserved."