Industrializing new technologies

From completion of landmark production sites to caring for the diversity and wellbeing of our people, Lenzing’s ability to scale depends on our global community.

Strategy for Better Growth

Redefining our strategic direction for business evolution

Our five-year roadmap

June 2022 saw the launch of Better Growth, our strategic roadmap for the next five years. “The time was right for us to redefine our strategic direction,” explained Markus Allesch, Vice President of Global Strategy and M&A. “Our 2015 strategy was very successful, but we’ve grown and advanced as a business, and the strategy needed to reflect this. The textile and nonwoven industries have also changed through an accelerated need for circularity.”

In the midst of a challenging market, it has become ever more important for us to maintain our stability as a leader in sustainable business practices within an unstable economic environment, while also maximizing growth opportunities in ways that consider both people and planet. “We do not stand still, even during a crisis,” added Markus, “which is why Better Growth is already underway”.

Large-scale strategic investment in Thailand and Brazil, as well as operational enhancements in China and Indonesia, strengthen our foothold so we can build our future business. The commercialization of our innovative technologies, and scaling up of premium fiber production, moves us towards our targets to reduce our carbon emissions while maintaining a profitable growth trajectory.

Members of the Managing Board introduced the strategy, taking it out to sites where our people on the ground are making it happen. “It’s important that we now focus forward,” Markus added. “We do this by bringing the strategy to life in everything we do, every day.”

Our ability to scale across the supply chain

Continued investment in Asia strengthens better growth in major market

Strong start readies Asia for market return

Our EUR 200 mn investment in the expansion and conversion of capacity across Asia positions us well to exceed our 2024 fiber revenue target as early as 2023. Ambitions remain high despite slowing demand.

“We’ve seen upward and downward trends in the market before, but we could not have predicted what’s happening now,” said Jayaraman Sethuraman, Senior Commercial Director AMEA & NEA. “We’re also feeling the repercussions of the pandemic, which led to massive over-buying by brands and retailers who’ve now stopped buying.”

Yet the strength of our specialty fiber brands, and increased production capacity, remain intact – not least because of our lyocell plant in Thailand, which opened in March. “We were selling everything within a gap of 10 days, which is unprecedented,” said Jayaraman. “The site is close to six of the seven key markets in Asia, so our lead time is fast and we’ve been working with more than 1,000 supply chain partners. Thailand really stood us in good stead for when the market comes back.”

“We’ve earned loyalty and goodwill as a preferred partner, and we continue to build on this through investment at Nanjing and Purwakarta. It’s my ambition that we see similar success at these sites. We’re not new to challenges, even though this one is prolonged, we’re a team of experts with good relationships across the industry. Our business is in good hands.”



On track to generate three quarters of fiber revenue from specialty brands by 2024.

Thailand’s team celebrates

Two and a half years in the making and our flagship lyocell plant in Thailand is operational. Opening on time and on budget in March 2022, despite pandemic-related challenges, it is the largest plant of its kind producing carbon-zero TENCEL™ lyocell fibers. This further strengthens our sustainable fiber offering within the region. “Initial ramp up was successful thanks to the sheer effort and determination of our team,” said Ismail Abdullah, Site Director, “but we had to act fast to manage inventory when demand decreased.”

“We know we can make fast decisions and quickly ramp down, so we’ll be able to ramp up at speed when the time comes.”

Until then, Ismail is more than satisfied with the high levels of safety and quality achieved. “We’re proud of our track record. Our focus now is on stabilizing and fine tuning operations to achieve consistent levels of quality – we’re currently running at around 80 to 85 percent.”

Early success creates market foothold

Slowdown notwithstanding, our lyocell plant in Thailand is already having an impact on the market.

“By December, we’d sold at capacity to our customers, especially in South Asia,”

explained Site Director Ismail Abdullah, who is proud of our 2022 achievements. “We already have more than 50 regional customers thanks to collaboration with the commercial team.”

Thailand’s early success is a huge win for all involved, yet Ismail is keeping his feet on the ground. “We will have a longer run at full rate in 2023, but the slowdown will continue into the first quarter and we still have production targets to meet. I know that when the time comes we will achieve our potential. We’re engineers and eager to see the plant perform at full capacity.”


k tons

Thailand’s fiber output weighs the same as the volume of water needed to fill 40 Olympic swimming pools.

What are lyocell, viscose and modal?

What are lyocell, viscose and modal?

All are cellulosic fibers derived from wood and each has unique properties created during the production process. Lyocell is a high-performance fiber known for its silky, smooth feel. Our lyocell brands include VEOCEL™ for nonwoven fabrics and TENCEL™ for textiles. Viscose absorbs and retains liquid and is used in personal hygiene products. Our viscose brands are LENZING™ ECOVERO™ for textiles and VEOCEL™ Specialty Viscose for nonwoven applications. Modal has long-lasting softness and our fibers are TENCEL™ branded.

On track for climate targets

Lenzing branded fibers have excellent customer loyalty across major markets in Asia. Investment in Nanjing, China, further readies production capacity for the return of this market demand. Work has progressed well throughout 2022 to convert the existing standard viscose production line to TENCEL™ branded modal fibers, which will secure the site as an exclusive producer of our specialty fibers.

Once complete, Nanjing will have a capacity of 35,000 tons of TENCEL™ modal fibers. Coupled with its transition to green energy next year, Nanjing will become a big player in moving us towards group-wide carbon neutrality.

Transformation of our specialty fiber production capacity also extends to Purwakarta, Indonesia, where we’re introducing our LENZING™ ECOVERO™ fiber lines. The site will become a pure specialty viscose supplier in 2023.

Premiumisation and specialization explained

Premiumisation and specialization explained

Everything we do, and the way we do it, is rooted in premiumisation. We create premium products. We offer premium services to our customers. We have a premium mindset attuned to setting higher standards. A key contributor to this is specialization, which refers to the specialty products we create, using eco-responsible production processes.

Brazil progresses to full capacity

Ramp-up sees pulp plant achieve quality right from the start

Teamwork takes Brazil towards full capacity

With initial volumes produced in April 2022, and the site currently exceeding 90 percent of its 500,000 ton capacity, the opening of our pulp mill in Indianópolis, Brazil is another major success to celebrate amidst economic turbulence. We also achieved high quality right from the start. Luis Künzel, Vice President of Pulp Brazil, shared the good news.

“As a mill, we’re resilient because we have Lenzing technology and can produce high quality at low cost. Our standards and practices are good too, so if we’re competing for anything, it’s manpower.” Pulp production is becoming increasingly competitive in Brazil and nearby countries, but Luis and his team have invested heavily in health and safety measures, recruitment, and training provision. “It’s taken real discipline,” Luis added, “but teams have responded well. We are doing the right things, and we are absolutely doing things right.”

Brazil in 2023

Looking to the year ahead, stable long-term production will require 70,000 hectares of forest to be planted. At the end of 2022, we’d reached 57,000 hectares and it will take up to six more years to reach our target.

The people making it happen

Advancing our world with better choices for people and planet

A shared purpose

In 2022, we set out to define our purpose in tandem with our strategic evolution. Through collaboration across our global business, we created a simple premise that could be easily understood and acted on. “Advance our world with better choices” is the purpose we share across Lenzing. Communication Manager, Matthias Maletzky explained more.

After two years of COVID-19 restrictions, it felt good to meet people in person.”

Listen to Matthias Maletzky, Communication Manager

Better choices for our people

Social sustainability has long been at the core of our business, but in 2022 we made it official with a dedicated Social Sustainability Team. Head of Corporate Learning & Development Alexandra Eder-Kollmitzer explained further. “We primarily aim to protect the welfare and wellbeing of everyone within our business and everyone who’s touched by it. We also support customer requests for Lenzing’s social sustainability credentials, which contributes to transparency and industry benchmarking.”

The team has a busy year ahead with planned diversity initiatives that will enable greater communication and connection across the business. “Diversity also needs to be inclusive,” added Monique Buch, Vice President of Global Nonwovens Business. “We achieve this by having the right people in the right roles across the Board – that means considering qualifications, culture and wider industry experience and knowledge, as well as gender.”

Katerina Kupkova, Site Director at Paskov, agreed. “Fair and open relationships are essential. It’s good to have a balance of diversity on all teams, and to understand and empathise with each other. The better we support one another, the more we can achieve together.”

Peter Keppelmüller, Vice President of Corporate Human Resources, emphasized the value of every individual’s contribution. “Everyone is making a difference; that’s everyone in every capacity from pulp production to consumer marketing. More than that, if you really want to have a positive impact on the environment, this is the industry to be in and the company to be in. We have passion, as well as deep expertise, which is what makes us resilient.”

Finding purpose in Purwakarta

News bulletins, team surveys and a dedicated two-year talent management plan are just a few of the people initiatives succeeding on-site in Purwakarta, Indonesia, managed by HR Director Vibrayani Bihara. “We’ve created a whole HR ecosystem to care for our people,” she explained. “Investing in our talent in tandem with the site’s conversion to specialty viscose production is all the more important during a tough period.”

A first line manager development program was rolled out in 2022, but a planned management leadership program was postponed due to Omicron.

It was a reminder that we have an opportunity to make a difference.”

Vibrayani Bihara, HR Director talks about finding purpose

Support for Ukraine

When war hit Ukraine, we immediately put together a crisis team to donate money and essential everyday items to support refugees. Teams on our sites in Austria and the Czech Republic worked closely with local authorities to set up emergency accommodation and support the provision of beds, blankets and sheets.

Harold Weghorst, Vice President Fiber Marketing & Branding, explained, “It also made sense to scale back on all social media and brand promotion. This wasn’t about us communicating what we were doing, but doing it. Lenzing is a business focused on people, and we want to do the right thing, even when no one is looking.”

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