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Lenzing AG

EANS-News: Lenzing contracts Wood to deliver world´s largest lyocell plant

  Corporate news transmitted by euro adhoc with the aim of a Europe-wide
  distribution. The issuer is responsible for the content of this announcement.

Professional partner confirms start-up date of the project in Thailand

Company Information/Contracts

Bangkok - With the recently announced plans to establish a lyocell production
facility in Thailand, the Lenzing Group is taking an important step in meeting
the strong demand for lyocell fibers and is further strengthening the company´s
position as an industry leader in the specialty cellulosic fibers market. The
proposed plant will be the largest lyocell plant in the world, with an annual
capacity of 100,000 tons. The total investment volume for the first production
line, including infrastructure and site development, amounts to approximately
EUR 400 million. Up to four such lines can be potentially integrated and
operated on the site. The project is of great importance to Lenzing as it is the
first step in bringing lyocell production to Asia, featuring the largest
markets, the most important customers and the most extensive growth potential in
specialty fiber production.

Zwtl.: Industrial Park 304 in Prachinburi: the ideal site for this project

The project to build a plant in Prachinburi, Thailand was approved in June 2019.
Industrial Park 304 in Prachinburi, located about 150 kilometers east of the
Thai capital Bangkok, was selected due to its excellent overall infrastructure
and the sustainable biogenic energy supply, which will help Lenzing to meet its
ambitious CO2 targets. Above all, the excellent cooperation with the Thailand
Board of Investment (BOI), the country's free trade agreements with China and
easy access to ASEAN's growing middle class market were all decisive factors in
selecting this site. The availability of local staff (for the planned workforce
of close to 300 employees) with the required educational background to drive
growth was also an important factor. The well-established operator of the
industrial park, with whom Lenzing has already signed contracts for utility
services, was also a reason for choosing Prachinburi.

Zwtl.: Wood - the ideal engineering partner

A further important step was the selection of a professional engineering partner
for crucial tasks such as detailed engineering, purchasing and construction
management and supervision, including quality, safety, cost and progress
control. These services will be provided as part of an Engineering, Procurement
and Construction Management (EPCM) contract.

With Wood, Lenzing has found the ideal partner for this - both companies signed
an EPCM contract on the 15th of August 2019. Wood was selected on the basis of
having the skills needed for a project of this size and an experienced team with
a strong reputation for delivering in line with project stipulations. An
important element for Lenzing is the start-up date of this project which was
also confirmed by Wood. Following the plant completion in the third quarter of
2021, Lenzing expects to produce the first fibers at this site in the fourth
quarter of the same year.

"Growing organically on a global scale requires a strong partner in designing
and building up the production assets. I am convinced that we have found the
right partner in Wood. During the kick-off meetings we could feel the energy of
the integrated team and their eagerness to drive that project to a successful
completion and start-up in the second half of 2021", says Heiko Arnold, CTO of
the Lenzing Group.

Mike Collins, President of Capital Projects in Wood's Asset Solutions business
across Europe, Africa, Asia & Australia, adds: "We are delighted to have been
chosen by Lenzing to help deliver what will be the world's largest lyocell
plant. Being selected to lead a project of this scale and complexity is
testament to the outstanding technical capability we have in our Asia Pacific
business, and our strong understanding of the local market environment in
Thailand where we have been operating for over 50 years."

Photo download: [https://]

Further inquiry note:
Filip Miermans
Vice President Corporate Communications & Investor Relations
Lenzing AG
Tel: +43 7672 701 2743

end of announcement                         euro adhoc

issuer:       Lenzing AG
              A-4860 Lenzing
phone:        +43 7672-701-0
FAX:          +43 7672-96301
ISIN:         AT0000644505
indexes:      WBI, ATX
stockmarkets: Wien
language:     English

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