The corporate strategy that we have been implementing since 2015 has proved to be very successful. Our focus on specialty fibers has enabled us to overcome difficult market conditions.
As we have grown and evolved as a company over the years, we needed to ensure that we could maintain this momentum within an industry that has also changed. From this position of strength, we have reviewed and further developed our strategic alignment up to 2030 and defined our new “Better Growth” strategy on this basis. This strategy focuses on ensuring that we continue to play a leading role in sustainable specialty fibers within a volatile economic environment. As a company, we aim both to be successful in business and to make a positive contribution to our world. This approach is reflected in our “Better Growth” corporate strategy.
Lenzing anticipates strong growth in demand for environmentally responsible fibers from the textile and clothing industries as well as from the hygiene and medical sectors. Our strategy aims to better serve growing demand for our fibers marketed under the TENCEL™, LENZING™ ECOVERO™ and VEOCEL™ brands.
We have identified four strategic driving factors that set a clear path to the future. These strategic drivers strengthen Lenzing’s differentiation and competitiveness and help us achieve better growth in all market segments.
We aim for more sustainable systems and processes in everything we do. We will focus our efforts on increasing our recycling capacity and on reducing our carbon footprint where we can have the greatest impact and stand out the most. We will reduce emissions at our production sites by switching to cleaner energy sources and by installing more energy-efficient equipment. We will also link linear supply chains that end in textile waste in order to create a cycle.
We are leading industry change by continuing to bring innovations to the market and by managing innovation as a key value driver. Our long-standing culture of innovation underpins our profitable growth and sustainability agenda by advancing the development of new products, applications, processes and techniques. These smart solutions are playing a part in the industry’s shift towards a more sustainable future for our planet – a future that brings us closer to our corporate mission.
We are getting a little better every day. Excellence in everything we do not only adds value but also creates the resilience that enables our business to thrive in a volatile market. Our relentless pursuit of excellence extends to all operational, commercial and global functional units and works to create value across all activities, projects and products. A vigorous drive for continuous improvement – through greater efficiency, quality and safety – also gives us the flexibility to face challenging times with confidence.
We develop premium products and premium services with customer needs at the center, in order to meet market requirements at the highest level. As an industry leader in the production of innovative, carbon-neutral fibers, we will continue to invest in our market share with differentiated premium brands and to work on greater transparency and traceability along the value chain, thereby making Lenzing a sought-after partner.
Our four strategic drivers will accelerate our profitable growth and enable us to move with greater certainty towards the strong financial targets we have set for 2027.
- As a sustainably growing, globally leading company, we will grow our EBITDA to a level of EUR 1 billion.
- Through our determination to create value, we will increase our return on invested capital to 12 percent.
- On our path to climate neutrality, we will reduce carbon emissions per tonne of the fiber and dissolving wood pulp we produce by 50 percent compared to 2017.
- As a champion of premium cellulosic fibers and a circular business model, we will expand our share of sustainable premium fibers to over 60 percent.
Further information on the “Better Growth” corporate strategy can be found on the Lenzing website at https://www.lenzing.com/lenzing-group/strategy.