Monday, November 16, 2015

Lenzing: Profitable Growth Thanks to Eco-Friendly Specialty Fibers

  • Share of revenue generated by specialty fibers targeted to rise to 50% by 2020.
  • The nonwovens segment is expected to expand twice as fast as the textile market. 
  • EBITDA growth of approx. 10% p.a. until 2020 
  • Increase in ROCE to more than 10% by 2020 

The Lenzing Group is presenting its business strategy for the coming years entitled “sCore TEN”. Accordingly, Lenzing’s main priorities are strengthening the company’s core business, intensifying cooperation with customers along the value chain, increasing the share of specialty fibers to 50% of total revenue by 2020, expanding its quality and technological leadership for man-made cellulose fibers and opening up new attractive business areas.

“Our objective is to safeguard and expand Lenzing’s leadership role on the dynamic growth market for man-made cellulose fibers“, says Lenzing’s Chief Executive Officer Stefan Doboczky. “To achieve this, we will focus more intensively on the most attractive segments in the specialty fiber business. Lenzing will put value before volume in the future. We aim at achieving volume growth.”

Lenzing expects demand for man-made cellulose fibers to increase by 5 to 6% p.a. until 2020, which is nearly twice as fast as the global fiber market. The primary factors driving demand are the continuing growth of the world’s population and rising prosperity in the emerging markets. Forecasts call for a rise in per capita textile consumption in the emerging markets by all in all 50% in the period 2010 to 2020. In the industrialized countries the nonwovens industry, an important sales market for Lenzing, will profit from the increased demand for hygiene products. The nonwovens segment is expected to expand twice as fast as the textile market.