Fiber Division
The Fiber Division comprises, in particular, the Lenzing Group’s business activities with its regenerated cellulosic fibers for textiles and nonwovens.
Lenzing stands worldwide for the ecologically responsible production of specialty fibers under the TENCEL™, LENZING™ ECOVERO™ and VEOCEL™ brands.
The “Glacial Threads: From Forests to Future Textiles” project combines sustainable glacier protection and textile recycling, and serves as an exemplar of Lenzing’s collaborative innovative capabilities in 2024. Geotextiles made from biodegradable LENZING™ fibers1 make a significant contribution to protecting glaciers, which are highly endangered by global warming, without polluting the environment with microplastics. Together with a network of innovative partners, Lenzing is currently working on processing used geotextiles into new textile fibers. The recycling of nonwovens for geotextiles was successfully tested in an initial pilot phase. This pilot project was showcased as part of the International Day of Forests celebrations at the Palace of Nations, the home of the United Nations Office in Geneva, and also received the “Biodiversity and Water Award” at the CNMI Sustainable Fashion Awards 2024 in Milan in September.
With the positioning of its product brands, the Lenzing Group has been sending a strong message to consumers since 2018. With TENCEL™ and LENZING™ ECOVERO™ as overarching brands for all specialty products in the textile segment, VEOCEL™ as the overarching brand for all specialty nonwoven products, and LENZING™ for all industrial applications, the company successfully showcases its strengths. Lenzing also enhanced its brands’ visibility in 2024 through targeted communication and marketing activities. Sustainability combined with transparency and traceability, innovation and strong brands represent Lenzing’s key differentiators.
The Fiber Division’s revenue reached a level of EUR 2.03 bn in 2024, 65.4 percent of which was attributable to textile fibers and 34.6 percent to nonwoven fibers. Fiber sales volumes grew to approximately 960,000 tonnes (compared with approximately 840,000 tonnes in 2023). The share of specialty fibers in fiber revenue increased to 92.6 percent (compared with 78.9 percent in 2023). The division’s earnings (EBITDA) amounted to EUR 32.8 mn, while the operating result (EBIT) amounted to minus EUR 68.7 mn.
Textile fibers
The market environment in the textile segment was again characterized by uncertainty and subdued demand in 2024. As a consequence, orders along the textile value chain continued to be placed at very short notice.
Despite generally subdued consumer sentiment, Lenzing encountered solid demand for its specialty fibers under the LENZING™ ECOVERO™, TENCEL™ Modal, TENCEL™ Lyocell, and TENCEL™ Luxe brands. As a consequence, sales volumes for most specialty fibers posted growth compared to 2023. Lenzing’s quality, the sustainable benefits of its fibers, and its innovative capabilities proved to be especially strong selling points. The company was also successful in further consolidating its ingredient branding strategy and in establishing the TENCEL™ and LENZING™ ECOVERO™ brands in light of their sustainability and comfort claims.
China, Türkiye, India, Pakistan, and Bangladesh continued to be the most important direct sales markets for Lenzing fibers in 2024.
In addition to the development of radically new technologies, Lenzing is continuously working on developing new application areas for existing fibers. In 2024, for example, a special denim collection with matte TENCEL™ brand lyocell fibers was developed together with Chinese partner Advance Denim. These fibers make it possible to develop fabrics made of lyocell fibers with a particularly matte appearance. Especially in the denim segment, this characteristic has encountered great interest from customers and partners, and enables the development of new application areas and sub-segments.
Thanks to its particularly innovative and sustainable character, the lyocell filament business also enjoyed a successful year. A further record in terms of sales volumes was set in 2024, and interest from brands, retailers, and fabric manufacturers continued to expand. Lenzing also demonstrated the high-quality applicability of TENCEL™ Luxe brand filaments in a unique collaboration with designer Peet Dullaert.
Lenzing enhanced the visibility and awareness of its TENCEL™ and LENZING™ ECOVERO™ brands with a series of global campaigns and initiatives that generated more than 15.5 bn impressions in online media and 59.3 mn interactions, including video views, on social media. The success of the TENCEL™ and LENZING™ ECOVERO™ brands in the 2024 financial year is also reflected in the collaboration with around 380 brand partners worldwide, including international and up-and-coming brands such as Armedangels, GANNI, Guess, Carhartt, Joao Maraschin, Marc O’Polo, VOGUE Collection, Camper, Calzedonia, Candiani, Yamamay, Impetus, COS, Next, Mother of Pearl, Stripe & Stare, Reformation, CASA, Sense of Place, Aimer, Eifini, DVF (Diane von Furstenberg), Peacebird, and LUOLAI.
The TENCEL™ brand also presented a new, modern brand identity in 2024. With its new brand manifesto “Nature. Future. Us.”, this brand emphasizes its commitment to promoting partnerships along the value chain and to driving positive change in the textile industry.
Nonwoven fibers
Nonwoven fibers are a strategic business segment for Lenzing which has grown over the course of the years. In addition to the functional benefits of Lenzing’s fibers, this growth has been driven by the global battle against plastic pollution, including ongoing UN Plastics Treaty negotiations, the EU Single-Use Plastic Directive, and the upcoming UK ban on plastics in wipes. To raise awareness about plastic pollution and about fiber solutions to reduce reliance on synthetic materials, Lenzing participated in the 2024 UNEP Sea of Solutions Conference.
In 2024, the focus was on expanding the fiber portfolio to include several specialty fibers. It has been a very successful year in which several innovations were developed and launched on the market. Paramount to these developments has been reduced time to market thanks to a strengthening of the innovation process.
Following the very positive market response to VEOCEL™ Lyocell fibers with Dry Technology in 2023, the Lyocell Dry family was expanded last year. This product family contributes to material conversion from plastic to wood-based cellulosic fibers in applications such as absorbent hygiene products (AHP) and wipes. The Lyocell Dry family enables customers to use hydrophobic fibers to meet fluid management requirements, and its product range features further characteristics such as softness and strength in their products.
A further highlight was the development of a new fiber finish for our nonwoven lyocell fibers, made without the use of palm oil, palm kernel or derivatives of palm oil as a component, thereby further enhancing their environmental credentials, such as fiber quality and performance.
Fibers from the Lyocell Shortcut product range with improved fibrillation were also presented at the Filtech trade fair in order to tap further sales potentials in the growing global filter market.
In the reporting year, Lenzing has also intensified its cooperation with key customers and downstream partners by developing joint innovation roadmaps covering products that are to be second and third generation products by 2030 and beyond. Furthermore, a comprehensive “Voice of the customer” project has been rolled out to better understand the needs and future aspirations of the market, and contribute to the success and performance of customers and value chain partners.
Lenzing not only strengthened existing business relationships in the reporting year, but also successfully focused on acquiring new partners. The company currently has 23 co-branding partners in Europe and North America, including two new additions. Long-standing partners such as Coterie in the US and Bode Chemie in Europe launched new VEOCEL™ branded products, thereby enriching their portfolios. Lenzing also entered into a partnership with Carefree sanitary pads in the USA, integrating VEOCEL™ lyocell fibers with Dry Technology into their top sheets. To promote this collaboration, Lenzing invested in live broadcasts on US television channels that are popular with its target consumers, which was supported by a social media influencer campaign. These efforts significantly boosted the brand’s visibility in the market.
In Asia, Lenzing engaged in several strategic partnerships, such as with Graminton to develop two co-branded products and accompanying campaigns, and with NBond to launch a new co-branded product in the moist toilet tissue sector. Lenzing also joined forces with Kindoh and well-known media Allure for Green Products Awards, as well as with LIFE Bioral and Akachan Honpo Water 99, to promote SDGs and sustainability as an important topic in the region.
One of the highlights of the reporting year was the VEOCEL™ Customer Event, where partners from the value chain were welcomed to the Lenzing site in Austria for a two-day experience.
Consumer education remained a further priority in 2024. Lenzing highlighted the benefits of choosing regenerated cellulosic fibers over synthetic materials. In a campaign, aired across social media and aimed at empowering consumers, Lenzing emphasized the importance of making informed purchasing decisions to support a healthier planet and a sustainable future.
Co-products of fiber production
At all locations where the Lenzing Group produces viscose or modal fibers, manufactured co-products include LENZING™ Sodium Sulphate. This is used in the detergent and glass industries and for the production of food and animal feed. In the 2024 reporting year, sales volumes increased mainly due to the exploration of opportunities outside the EU markets.
1 LENZING™ fibers certified by TÜV as biodegradable (soil, freshwater & marine) and compostable (household & industrial) include the following products: LENZING™ Viscose Standard Textiles/Nonwovens, LENZING™ Lyocell Standard Textiles/Nonwovens, LENZING™ Modal Standard Textiles, LENZING™ Lyocell Filament, LENZING™ Lyocell Dry, and LENZING™ Nonwoven Technology. An exception in certification applies for the LENZING™ Lyocell Filament fiber, for which the necessary tests for confirming biodegradability in a marine environment have not yet been conducted.