Investing $293 million in the United States of new advanced Tencel factory is a part of Lenzing’s business strategy. It is aim to increase the income ratio of special fiber industry. The new factory will be located in Mobile, Alabama and has a 90 thousand tons annual production. This factory will be the biggest Tencel fiber processing factory in the world.
Lenzing considers this a new milestone to the history of Lyocell fiber. The factory will be equipped with the most advanced technology and processing standards and planned to operate formally in the first quarter of 2019.
Lenzing announced its expansion plans of Austria and the UK market early and invested $111.5 million in Europe for virgin wood pulp production. And the company hopes that the new factories will increase the income ratio of special fiber to 50% before 2020. Stefan Doboczky from Lenzing said that the investment project plays an important role to implement the company strategy and will help the company to live up to the promises they made for customers about making their products more sustainable by using Lenzing’s most sustainable plant fiber, Tencel.
Up to now, Lenzing has production capacity of 220000 tons per year of Tencel fiber. The company founded a new management committee to promote the development process and integrate key technique, operation and engineering responsibilities for the expansion plans.