Business Development by Division
The management of the Lenzing Group’s business is divided into the two divisions “Fiber” and “Pulp”.
In the 2025 financial year, the company consistently pursued its premiumisation strategy, focusing on high-margin markets and premium fibers. At the same time, operational efficiency was increased and production sites were optimized. In addition to a stronger focus on premiumisation and excellence, innovation and sustainability remain the core pillars of Lenzing’s strategy.
The premiumisation strategy focuses on cellulose-based premium and specialty fibers. These are marketed in attractive market segments under the established brands TENCEL™, LENZING™ ECOVERO™ and VEOCEL™. At the same time, the company will gradually withdraw from low-margin commodity segments. Moreover, Lenzing is increasingly expanding into previously untapped and new application areas such as hygiene, packaging, filtration as well as medical and industrial applications. This strengthens the resilience of the business model in a volatile market environment. In the textile fibers area, the focus is on high-growth applications and end markets. Over the coming years, the Lenzing Group will further expand its international presence in Asia and North America, thereby moving closer to customers in these important textile and nonwovens markets.
With its further developed strategy, Lenzing aims to achieve a more balanced regional distribution of its global revenue as well as a balanced mix between the textile and the nonwovens businesses, in order increase its resilience to market fluctuations.
The pulp business, which secures Lenzing’s own supplies of dissolving wood pulp for fiber production and also generates revenue on the external pulp market, forms an integral part of the Lenzing Group’s business model. At pulp sites, the continued focus was on operational excellence in order to further improve the cost structure and increase production capacities.
Lenzing once again maintained its leading position in environmental and social sustainability during the reporting period. The company was once more recognized by the most important rating agencies in the industry. In 2025, CDP awarded Lenzing the prestigious Triple “A” rating for the fourth time for its performance in the areas of climate change, forests and water security. This places Lenzing among only 23 companies worldwide that achieved “Corporate A List” status in all three categories in 2025, out of more than 22,000 companies that disclosed environmental data. In the EcoVadis ESG rating, Lenzing achieved Platinum status for the fifth consecutive time, the highest possible rating, placing the company among the world’s top companies. MSCI rated Lenzing with an “A” and the company again achieved first place in the global “Hot Button Report” of the non-profit organization Canopy, which evaluates the performance of global producers of regenerated cellulose fibers in the areas of sustainable sourcing, transparency and innovation.
Further information about ratings and awards relating to environmental and social sustainability can be found in the non-financial statement in the Annual and Sustainability Report.