Austrian fibres producer Lenzing has formed a joint venture with Austria’s Palmers Textil AG to produce protective masks for the European market in April The JV, Hygiene Austria LP GmbH, is producing so-called mouth-nose protective masks and surgical protective masks and plans to produce more than 25 million masks per month.
The company reported a 59 per cent drop in first-quarter net profit and dropped its dividend as the sector grapples with oversupply. Its net profit fell to $19.2 million and its revenue declined by 17 per cent for the three months to March 31.
The company’s prices for standard viscose fell to an all-time low due to oversupply, said the company, which produces cellulose fibers derived from sustainable wood and pulp. It would withdraw its dividend proposal of one euro per share due to the coronavirus crisis.
