Value creation at the Lenzing Group

[ESRS 2 SBM-1; GRI 2-6, 2-22, 201-1]

The Lenzing Group is committed to the ecologically responsible production of fibers made from the renewable raw material of wood grown in sustainably managed forests and plantations. As an innovation leader, Lenzing partners with global textile and nonwoven manufacturers and drives many new technological developments.

Value chain

Value chain  (illustration)
a) Applies to TÜV certified biodegradable and compostable LENZING™ fibers. The compostability and biodegradability of final consumer textile and nonwoven products depend on the material composition (fiber blend) and processing in the value chain steps.

The Lenzing Group is part of the chemical industry and its fibers are mostly used in the textile and apparel industry. Lenzing’s product portfolio ranges from dissolving wood pulp as the basic raw material to generic fibers and innovative specialty fibers as well as energy, biobased biorefinery products, and co-products. Lenzing’s own pulp production at its sites in Lenzing (Austria), Paskov (Czech Republic) and Indianópolis (Brazil) is based on a biorefinery concept, completely utilizing the raw material wood.

Lenzing combines comprehensive expertise in operating pulp and biorefinery processes with decades of experience in three major fiber process technologies:

  • Viscose (rayon)
  • Modal
  • Lyocell

Further developments and technologies have resulted from the above-mentioned processes. For more information, please see the “Net-benefit concept” section or the Lenzing website.

The Lenzing Group’s high-quality fibers form the basis for a variety of nonwoven and textile applications ranging from elegant clothing and versatile denims to high-performance sports apparel, luxurious bed linen, and sustainable footwear. Due to their consistently high quality Lenzing fibers are also highly suitable for hygiene and personal care products as well as technical applications.

Supply and sourcing

The principal raw materials for producing Lenzing’s fibers are wood and process chemicals. The company uses dissolving wood pulp from its own production operations and from external suppliers.

Dissolving wood pulp and cellulosic fiber production

Production takes place in two stages: first, the production of dissolving wood pulp, and second, the production of fibers based on dissolving wood pulp. Lenzing’s own dissolving wood pulp is produced in three biorefineries at sites in Lenzing (Austria), Paskov (Czech Republic) and Indianópolis (Brazil). Lenzing aims to use state-of-the-art sustainable production technology.

This entails high resource efficiency, high chemical recovery rates and, where possible, closed loops for process chemicals and water.

Bioenergy and biorefinery products are generated as well. Lenzing combines its comprehensive expertise in pulp and biorefinery technologies with decades of experience in cellulosic fiber production.

Down-stream manufacturing

As shown in figure “Value chain” under “Manufacturing steps”, the customers in Lenzing’s downstream value chain use the fibers to manufacture textile, nonwoven, or industrial products.

Lenzing works closely with value chain partners from direct customers to the retail level in the textile and nonwovens sector and for industrial applications – to provide expertise in processing as well as in developing innovative applications.

Distribution and use phase

Finished products are distributed after manufacturing and enter the consumer use phase.

End of life

TÜV certified biodegradable and compostable LENZING™1 fibers are as the name suggests compostable and biodegradable. However, the compostability and biodegradability of final consumer textile and nonwoven products depend on the material composition (e.g. fiber blend) of the product and processing in the value chain.

Lenzing Group: Distribution of value creation





Value creation

EUR 685.4 mn

EUR 527.6 mn

EUR 26.3 mn





Economic value creationa





EUR 446.4 mn

EUR 449.5 mn

EUR 464.4 mn

Retained earnings

EUR 12.2 mn

EUR -37.2 mn

EUR -593.0 mn

Public sectord

EUR 67.6 mn

EUR 42.6 mn

EUR 23.0 mn

Shareholders (dividends)e

EUR 115.5 mn

EUR 0.0 mn

EUR 0.0 mn


EUR 43.6 mn

EUR 72.7 mn

EUR 131.9 mn

ROCE (return on capital employed)b,g

5.4 %

2.0 %


Adjusted equity ratiog

39.7 %

37.8 %

34.7 %


EUR 2,194.6 mn

EUR 2,565.7 mn

EUR 2,521.2 mn

EBITDA (earnings before interest, tax,
depreciation and amortization)b

EUR 362.9 mn

EUR 241.9 mn

EUR 303.3 mn

Sales volume fibers

909.000 t

814.430 t

841.000 t


Value creation within the Lenzing Group is calculated as the company’s business performance minus the cost of materials, other expenses, depreciation and amortization. The distribution of value creation shows the extent to which it is distributed among stakeholders such as employees, the public sector, and lenders.


Reclassification of capitalized borrowing costs, net interest from defined benefit plans and commitment fees from EBIT/EBITDA to the financial result (see note 2 of the Lenzing Group consolidated financial statements 2023).


Personnel expenses less municipal taxes.


Income tax expenses plus asset taxes and similar taxes plus municipal taxes.


Based on the proposed distribution of profits.


Financing costs less net foreign currency gain/losses from financial liabilities.


The above mentioned financial indicators are derived primarily from the IFRS consolidated financial statements of the Lenzing Group. Additional details are provided in the section “Notes on the financial performance indicators of the Lenzing Group”, in the glossary to the Annual Report and in the consolidated financial statements of the Lenzing Group.

1 LENZING™ fibers which are TÜV certified biodegradable (soil, fresh water & marine) and compostable (home & industrial) include the following products: LENZING™ Viscose Standard textile/nonwovens, LENZING™ Lyocell Standard textile/nonwovens, LENZING™ Modal Standard textile, LENZING™ Lyocell Filament, LENZING™ Lyocell Dry and LENZING™ Web Technology. There is an exception for the TÜV certified biodegradable & compostable fibers LENZING™ Lyocell Filament and LENZING™ Lyocell Dry, they fulfil the above mentioned conditions except biodegradability in marine environments.

Topics filter

Results for