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.
The combined annual production capacity of our sites in Asia.
Our ability to scale across the supply chain
Continued investment in Asia strengthens better growth, enhances relationships and ensures quality
Flagship lyocell plant opens in Thailand
Our lyocell plant in Prachinburi, Thailand, opened on time and on budget in March 2022.
It is the largest plant of its kind producing carbon-zero TENCEL™ Lyocell fibers, which further strengthens our sustainable fiber offering within the region. What’s more, it has already proven to be a huge asset in moving Lenzing towards carbon neutrality (Scope 1 and 2).
The initial ramp up was hugely successful with the site selling at capacity to customers by December. The plant is close to six of the seven key markets in Asia, which reduces both lead times and carbon emissions through reduced transportation needs, and also allows us to work with more than 1,000 supply chain partners. The site is currently running at around 80 to 85 percent capacity while teams focus efforts on achieving consistent levels of quality.
Building on this momentum, we continue to invest in our sites in Nanjing, China, and Purwakarta, Indonesia, where we hope to see similar success when market demand returns.
On track for climate targets
Our site in Nanjing, China, is set to make a significant contribution towards our group-wide net-zero target. Work has progressed well throughout 2022 to convert the existing standard viscose production line to TENCEL™ branded modal fiber. This will secure the site as an exclusive producer of modal fibers with a capacity of 35,000 tons. The site’s sustainable fiber output coupled with its transition to almost 100 percent green electricity will significantly reduce climate impact while supporting profitable growth.
Positive progress has also been made in the transformation of our production capacity at Purwakarta, Indonesia. Since July 2022, the site has obtained electricity generated 100 percent from renewable sources, which will serve to reduce its carbon emissions by 75,000 tonnes annually. The site will also become a pure specialty viscose supplier in 2023 when we introduce our LENZING™ ECOVERO™ fiber lines.
Brazil progresses towards full capacity
Our largest ever investment sees ramp-up of our pulp mill achieve quality and high production rates right from the start
Brazil progresses towards full capacity
The opening of our pulp mill in Brazil has been another major success this year, with initial volumes produced in April, and 90 percent production capacity achieved in December. What’s more, the team achieved high quality right from the start. As Lenzing’s largest ever investment in the provision of sustainable raw materials for wood-based fiber production, the success of the ramp-up phase further secures our supply of dissolving wood pulp sourced from FSC certified plantations.
A roadmap for Better Growth
We redefined our strategic direction, creating a roadmap that focuses on maximum climate impact and business evolution
Our five-year roadmap
Lenzing launched Better Growth in June 2022 – our strategic roadmap for the next five years. While our 2015 strategy has been very successful, we have grown and advanced as a business since its launch. The industry has also changed through an accelerated need for circularity, so the time was right to evolve our corporate strategy to reflect these changes.
It has become ever more important for Lenzing to maintain stability as a sustainability leader within an unstable economic environment. It is equally important that we maximize growth opportunities in ways that benefit both the business and the environment.
We therefore identified four strategic drivers, one of which is Sustainability. This will drive our efforts to establish more sustainable systems and processes. It will also direct our focus where we can have the greatest impact by increasing recycling capacity, lowering our environmental footprint and continuing to champion circularity.
Better Growth is already underway across the business with commercialization of our innovative technologies, scaling up of premium fiber production, and progress made towards our climate targets. Members of the Managing Board introduced the strategy to the people of Lenzing, taking it out to production sites throughout 2022.
Achieving Better Growth through better choices
Our shared purpose enables our people to make a difference through better choices that advance our world
A shared purpose
Fulfilling our sustainability ambitions requires that we care for the long-term, sustainable wellbeing of both people and planet. Our approach to corporate social responsibility therefore means taking responsibility for Lenzing’s ecological, social and economic impact on all environments in which we operate – not least because this is the principle at the heart of our sustainability strategy, Naturally Positive. That’s why, in 2022, we set out to define a purpose that would support this 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 now share, along with the understanding that Better Choices lead to Better Growth.
Each individual within Lenzing has the ability to make better choices, and to make a positive contribution towards the sustainable practices and outcomes of our business. What’s more, with this shared purpose received well across the business in 2022, we are set to continue making a difference to people and planet.
Better choices for our people
Lenzing’s new Social Sustainability Team stepped into action in 2022 with a focus on the welfare and wellbeing of everyone within the business – as well as everyone who’s touched by it. Social sustainability has long been at the core of our business and requires a systematic approach for us to successfully manage and meet our social responsibility targets.
The team will ensure Lenzing’s compliance with legislative changes and reporting requirements, as well as overseeing social audits of all sites to measure and improve social and ethical governance. The team also supports customer requests for Lenzing’s social sustainability credentials, which contributes to transparency and industry benchmarking.
In addition, diversity, equity and inclusion comprises a large part of their remit, and the team has a busy year ahead with a planned calendar of diversity initiatives that will enable greater communication and connection across the business.
People will secure business success
People initiatives in place across Lenzing sites have seen great success in 2022, especially those with a focus on training and development, and diversity and inclusion.
In Purwakarta, Indonesia, news bulletins, team surveys and a dedicated two-year talent management plan are making an impact – as investment in people alongside the site’s conversion to specialty viscose production will maximize positive sustainability outcomes. A first line manager development program was also rolled out in 2022 and planned training events in the coming year will build the agility of teams, enabling them to quickly acquire skills and technical knowledge needed for specialty fiber production. Further to this, sharing regular updates of what’s going on in the wider business – like the launch of Lenzing’s new purpose – aids motivation and reminds the team they’re part of something bigger.
This year also saw the launch of a comprehensive diversity and inclusion program at LD Celulose, our joint venture in Brazil. Run by the HR team, the program is supported by volunteers from a variety of job functions across the site. Recruitment campaigns have been designed to attract applicants of all ages, genders and levels of disability. Focused talent management has introduced mentorship and training programs to develop skills needed for career progression, including leadership opportunities for women. While investment in health and safety programs have delivered initiatives to support disability awareness and the safety of women in the workplace.