EANS-News: Lenzing AG Lenzing Group successfully completes expansion of pulp
production at the Lenzing site
--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is responsible for the content of this announcement.
--------------------------------------------------------------------------------
Strategic Management Decisions/Company Information
-
* Production capacities increased to 320,000 tons p.a.
* Investments of EUR 60 mn enhance self-sufficiency and strengthen autonomy from
market prices
* Project serves as a significant economic driver in the region
Lenzing - Lenzing AG, producer of pulp and fibers from the renewable raw
material wood, has concluded its expansion and modernization drive at the pulp
plant at the Lenzing site. The company invested EUR 60 mn for this purpose,
increasing production capacities for dissolving pulp extracted from beech wood
from 300,000 to 320,000 tons per year. The coming on stream of the additional
pulp capacities over the past weeks strengthens Lenzing's self-supply of pulp in
accordance with the sCore TEN corporate strategy.
"The successful expansion brings us closer to achieving our strategic objective
of increasing our self-supply of pulp to a level of 75 percent, thus making us
even more resistant to price fluctuations in sourcing pulp", says Stefan
Doboczky, CEO of the Lenzing Group. "We are also pleased that this project
enables us to make a further significant contribution towards strengthening the
Lenzing site as well as the regional economy", Mr. Doboczky adds.
The expansion drive was completed in less than two years. In addition to 100
Lenzing Group employees, numerous external partner companies from Upper Austria
and neighboring regions were involved in implementing the project. About 40,000
working days were needed by external companies in order to install the delivered
machinery on site. The Lenzing Group secured additional jobs due to the pre-
production work required in the factories of these suppliers.
In line with the corporate strategy of the Lenzing Group, the self-supply of
dissolving wood pulp will be successively increased in the coming years to 75
percent of consumption. At present, Lenzing's own pulp plants in Lenzing and
Paskov (Czech Republic) cover 60 percent of the Group's pulp requirements. The
Lenzing site primarily makes use of beech wood which is not suitable for
producing furniture, whereas it mainly relies on spruce wood in the Czech
Republic. The remaining dissolving wood pulp is sourced from a variety of
hardwoods and softwoods from international partners. In this case, in the spirit
of sustainability, Lenzing applies procurement rules which are just as strict as
when it purchases wood for its own pulp production.
Photo download:
https://mediadb.lenzing.com/pinaccess/showpin.do?pinCode=MQPteYA3FD2A [https://
mediadb.lenzing.com/pinaccess/showpin.do?pinCode=MQPteYA3FD2A]
PIN: MQPteYA3FD2A
Further inquiry note:
Lenzing AG
Mag. Waltraud Kaserer
Vice President Corporate Communications & Investor Relations
Tel.: +43 (0) 7672 701-2713
mailto:w.kaserer@lenzing.com
end of announcement euro adhoc
--------------------------------------------------------------------------------
issuer: Lenzing AG
A-A-4860 Lenzing
phone: +43 7672-701-0
FAX: +43 7672-96301
mail: office@lenzing.com
WWW: http://www.lenzing.com
ISIN: AT0000644505
indexes: WBI, ATX
stockmarkets: Wien
language: English