Monday, May 19, 2014

Lyocell in Lenzing Annual Reports (2001)

Another lyocell extract from an old Lenzing annual report.  Once again Naomi Campbell's image decorated a few pages.

A lower demand from textile customers and the reluctance to purchase on the part of US businesses acted as a brake on the development of Lenzing Lyocell. It is positive to note that the delivered quantities were slightly above last year's level, although the overall conditions continue to be difficult. 82% of the fibers produced at Heiligenkreuz / Burgenland, Austria, were exported. The main markets in Europe are Italy, Spain and Portugal. Furthermore, deliveries go to China, Japan, South Korea, as well as Brazil and the USA. The result of the company continues to be negative, in spite of intensive measures to counter this trend. The fashion industry uses Lyocell for casual and jeanswear, as well as for products worn close to the skin, such as T-shirts and lingerie/underwear. Home textiles is a segment that is expanding continuously. The newly launched low fibrillation fiber Lyocell LF and the filling fibers are promising developments. Fibers for technical applications offer further good prospects.

 LYOCELL R&D: This year again, efforts to optimize the Lyocell technology were at the center of attention. New fibers were developed and existing ones were improved. The company stepped up activities to further develop a low-fibrillation Lyocell LF fiber, to improve the suitability of Lyocell for the nonwovens sector, as well as the use of the specific property profile of this new fiber generation for home textiles and technical applications.  

The following paragraph referred to CVC's attempt to merge Courtaulds and Lenzing's fibre interests. During the period when regulatory approval for this deal was being sought in the USA, Courtaulds largest and most efficient viscose plant in Mobile Alabama was closed on the basis that the single remaining US viscose plant operated by Lenzing in Lowland Tennessee should be preserved.  (It would be interesting to learn more about the thinking behind this. At the time, Lowland appeared the less viable plant!)

On 17 October 2001 the European Commission, for reasons of competition law, prohibited CVC Partners to acquire the majority of the Lenzing shares. This does not create any problems for the Lenzing Group, as we are able to continue on our course successfully on account of our size and global leadership position. The new majority shareholder, the B & C Group, considers itself to be the Austrian core shareholder with long-term entrepreneurial interests.

Click here to download the full report

No comments: