Pulp Division
The Pulp Division comprises all Lenzing Group business activities from wood procurement through to the production and sale of dissolving wood pulp and biorefinery products. In the reporting year, the new pulp mill in Indianópolis (Brazil) produced at levels well above its nameplate capacity of approx. 500,000 tonnes per year, while at the same time delivering excellent quality. Surplus electricity is fed into the public grid as renewable energy. These new production volumes contribute significantly to strengthening Lenzing’s self-sufficiency in dissolving wood pulp and support premiumization in line with the corporate strategy.
In September 2024, Lenzing announced a USD 650 mn green bond issue by joint venture LD Celulose (issuer LD Celulose International GmbH). This bond encountered great demand from institutional investors. LD Celulose’s new financing structure, which comprises a total volume of USD 1 billion, also includes a USD 350 million syndicated loan. LD Celulose used the net proceeds from both the issue and the loan disbursement, plus available cash, to repay its existing project financing and convert it into independent corporate financing. Lenzing holds a 51 percent interest in the joint venture, which was established for the construction of the plant.
To provide the biomass, LD Celulose secured over 44,000 hectares of FSC® certified commercial forest, and leased additional land, in order to have approximately 70,000 hectares of FSC® certified forest area when completed.1 These plantations operate in full accordance with Lenzing’s guidelines and high standards for wood and pulp sourcing.
In line with its “Better Growth” strategy, Lenzing is also continuing its recycling activities. Lenzing has been proactively developing and promoting innovations in the area for years in order to provide economically viable and scalable solutions to the global textile waste problem. Since 2021, Lenzing has been working with Swedish pulp producer Södra to jointly develop new processes for recycling used textiles on an industrial scale. Sluggish conditions on the textile market slowed growth in the sector, as the cost structure does not yet allow for higher volumes.
The Pulp Division’s (internal and external) revenue reached a level of EUR 1.17 bn in 2024. Divisional earnings (EBITDA) amounted to EUR 436.3 mn, and operating earnings (EBIT) stood at EUR 243.7 mn.
Wood
Wood markets stabilized further in 2024 due to lower industrial demand for wood as well as lower energy prices and the associated lower consumption of biomass. Wood prices fell accordingly, although in line with expectations.
The Lenzing Group’s procurement strategy entailing long-term master agreements achieved a good stabilizing effect on volumes and prices. As a consequence, Lenzing was able to supply its pulp sites in Lenzing (Austria) and Paskov (Czech Republic) with sufficient wood during the reporting year.
In 2024, audits in accordance with the Forest Stewardship Council® (FSC®) and Programme for the Endorsement of Forest Certification (PEFC) forest certification systems confirmed again for both sites that, in addition to stringent forestry laws in the supplier countries, all wood used derives from PEFC and FSC® certified or controlled sources.2
Pulp
To supply the fiber production sites with high-quality dissolving wood pulp, Lenzing Group operates its own pulp mills at its sites in Lenzing (Austria), Paskov (Czech Republic), and Indianópolis (Brazil). This increased the level of self-sufficiency to significantly more than 75 percent targeted by the corporate strategy. Lenzing also established itself as a structural supplier in the global pulp market. Most of the dissolving wood pulp sourced externally is purchased on the basis of long-term contracts. A total of approximately 1,176,000 tonnes of dissolving wood pulp was produced at Lenzing’s pulp plants in 2024.
Biorefinery products
In addition to dissolving wood pulp, the Lenzing Group’s biorefineries also produce and market biorefinery products so that further components of the valuable raw material wood are utilized. Renowned customers from the food, animal feed, pharmaceutical and chemical industries rely on biobased products from Lenzing.
In 2024, Lenzing and C.P.L. Prodotti Chimici signed their first licensing agreement for LENZING™ Bio-based Acetic Acid, which marks a further step towards a more sustainable and resource-efficient industry. A lifecycle analysis performed by the research institute Quantis confirmed that the carbon footprint of LENZING™ Bio-based Acetic Acid is more than 85 percent smaller than that of comparable products based on fossil resources.
1 FSC license code: FSC-C175509, FSC-C165948
2 License code: FSC-C041246 and PEFC/06-33-92