- Heiligenkreuz employed 180 people
- Lenzing Lyocell R&D employed another 130 people
- Any remaining Tencel R&D would be moving to Austria
LONDON (CNI)--Austrian fibres group Lenzing said Friday it will file a modified application for its acquisition of the Tencel cellulose fibres company in the next few days.
The Austrian Supreme Court on 14 February confirmed a 28 October decision by the anti-trust authorities restraining Lenzing from the acquisition.
However, an agreement was made with the anti-trust authorities prior to the ruling on conditions and limitations to be included in a revised application.
A Lenzing spokeswoman told CNI the company had not agreed that the acquisition would lead to a monopoly in its markets. Austrian law, however, contains a provision to safeguard the country’s economy against concentration of manufacturing segments.
She added that the company in its new application would have to promise to safeguard for six years the 180 jobs at its 40 000 tonne/year fibre production plant at Heiligenkreuz, Austria.
Lenzing also had to guarantee that its Lyocell research and development (R&D) business, which employs 130 people, will stay in Austria.
Since agreement has been reached on the terms, the company expects a swift approval of the merger. The spokeswoman said this would probably mean a final decision would be made in four to six weeks.