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 fiber output weighs the same as the volume of water needed to fill 40 Olympic swimming pools.
Brazil progresses to full capacity
Ramp-up sees pulp plant achieve quality right from the start
The people making it happen
Advancing our world with better choices for people and planet
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.