EANS-News

Lenzing AG / Successful Start-up of World's Largest TENCEL® Production Plant in Lenzing (1)

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Company Information

- First sales volumes already successfully marketed - Technological
milestone for TENCEL® , the fiber of the future - The TENCEL®
production plant secures 140 jobs at the Lenzing site - Investment
costs of EUR 150 mn and construction time of 24 months fully on
schedule

The Lenzing Group has successfully initiated production at its new
TENCEL® jumbo production facility, the largest in the world, at the
Lenzing site in Upper Austria. The plant is in the midst of a stable
ramp-up phase. The feedback on the part of the market is very
positive.

"We are more than satisfied with the progression of the start-up
curve. Based on the production process in the past days and weeks, we
have reasonable grounds to believe that this latest generation of
TENCEL® technology will completely fulfill our expectations", says a
confident Lenzing Chief Executive Officer (CEO) Peter Untersperger.
"The successful start-up of production operations is a technological
milestone for TENCEL® the fiber of the future and for the entire
Lenzing Group. We are optimistic that we will be able to achieve the
planned production target of 30,000 tons by the end of 2014. This new
TENCEL® facility is decisive to ensure the long-term viability of
fiber production at the Lenzing site and the basis for future
investments in all markets", adds Lenzing's Chief Operating Officer
(COO) Friedrich Weninger.

This factory comprises the first time in which a single production
line with an annual nominal capacity of 67,000 tons was installed.
Previous TENCEL® production lines were usually only one-quarter as
large. The new plant design incorporates lessons learned from the
longstanding experience of three existing Lenzing Group TENCEL®
production plants located in Austria, USA and Great Britain. As a
consequence, the new TENCEL® plant in Lenzing represents the world's
leading generation of TENCEL® technology. The new design of the jumbo
production line also enables investment costs to be maintained at a
very competitive level of approximately EUR 150 mn (about EUR 2,200
per ton of capacity). This comprises the decisive approach to the
further competitive scaling of TENCEL® fibers as a universally
deployable textile and nonwoven fiber. The new, broader product
portfolio on the basis of the TENCEL® technology successfully