Consolidated sales of the Lenzing group declined slightly in 2014 compared to 2013. This drop can be attributed to the continuing downward pressure on fiber prices as a consequence of the global surplus capacities of viscose fiber producers. Lenzing is a leader in the production of man-made cellulose fibers. It reported consolidated earnings before interest, taxes, depreciation and amortization of about euro 240 million in 2014 in spite of the ongoing low selling price environment. The company has adjusted its expansion plans in Indonesia and China.
The group achieved sustainable cost savings, substantial improvements in the product mix and the successful coming on stream of the new tencel fiber production facility at the Lenzing site. New tencel applications for denim fabrics, shirts, home textiles and new nonwoven products, as well as generally new blends with cotton, were successfully launched in the market.
Productivity increases will be based on setting up a centralized maintenance unit, adapting engineering capacities to the lower investment activity of the Lenzing group in future and strategically repositioning Lenzing Technik. Due to the changed medium-term viscose fiber price expectations, the company plans to save around 94 million euro in goodwill, property, plant and equipment and other intangible assets of the group’s companies.
www.lenzing.com/en/concern/home.html
