No substantial additional lyocell volumes, over and above the successful 25,000 tons expansion in Austria, will be added to the market in 2019 and 2020 by Lenzing. Among the reasons are: rising likelihood of increased trade tariffs, paired with the potential surge in construction costs due to the buoyant US labor market.
Consequently Lenzing will put all its efforts into readjusting the execution of its growth plan to meet the strong market demand for its lyocell fibers. This includes an increased focus on the lyocell expansion project in Thailand. Lenzing remains on track for specialty expansions such as Tencel Luxe filaments and Lenzing Ecovero viscose fibers.
With Tencel Luxe, a lyocell filament, Lenzing entered the filament market for the first time. It will further support Lenzing’s shift to become a true specialty player in the botanic materials market derived from sustainable wood sources. Tencel Luxe will open new markets for Lenzing and allow the company to participate in the premium segment of the fabrics market.
The eco-botanic lyocell filaments are made from wood pulp, which is sourced from sustainable wood in line with Lenzing’s strict wood and pulp policy.