Lenzing Ups Fiber Capacity Again

For the second time in four months, Austrian fiber maker Lenzing has outlined plans to increase its global capacity.

The cellulosic fiber specialist says it will invest $105 million to double capacity at its Nanjing, China, site, and upgrade capacity at its home base in Lenzing, Austria. In addition, the firm says it is planning to build a fiber plant in India.

In China, Lenzing says it will spend $74 million to bring annual capacity over the next two years up to 140,000 metric tons. Cellulosic fibers are widely used in a variety of home textile and apparel applications. The increase in capacity at Nanjing, "will meet the fast-growing demand for standard cellulose fibers in Asia," says Peter Untersperger, board of management chairman.

Lenzing also plans to spend $31 million over the next 15 months to switch production at the Lenzing, Austria, site from standard rayon fibers to modal fibers, which are less prone to stretch when damp. Friedrich Weninger, Lenzing's board member responsible for the fibers business, points out that, "Modal has turned out to be a global export success over the past years, particularly in Asia." Switching the site over to modal fiber production enables Lenzing to meet growing global demand.

The latest expansion plan comes on top of $175 million in projects the firm outlined in December. At that time, Lenzing said it would increase fiber capacity in Indonesia and Heiligenkreuz, Austria, and remodel its Grimsby, England, lyocell plant (C&EN, Dec. 21, 2009, page 22). Lyocell is a high-performance cellulosic fiber.

Once the China and Indonesia expansions are complete, Lenzing says it will have global cellulosic fiber capacity of 770,000 tons per year. About half of its global capacity will then be in Asia.