EANS-Adhoc: Lenzing AG / Lenzing decides on capacity expansion program

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14.12.2009

Lenzing decides on capacity expansion program

The Lenzing Group, world market leader in cellulose fibers, will
continue to expand production capacity in 2010 by investing a
scheduled EUR 120 mill. in its European and Asian sites. The projects
will be realized over the next two years. The key elements are the
further extension of pulp production at the Lenzing site (Upper
Austria) and a further extension of fiber production at Heiligenkreuz
(Burgenland, Austria) as well as remodeling the TENCEL® site at
Grimsby (UK).

Peter Untersperger, chairman of the Lenzing management board,
comments on these latest strategic decisions: "We are expecting
continuing strong demand for Lenzing fibers over the coming years. By
these projects we as the world market leader intend to secure and
enhance our lead in terms of quantity as well as quality. And the
message is clear: the Lenzing Group is going to shape fiber future
jointly with its customers".

In a couple of weeks the fourth production line of the Indonesian
subsidiary PT. South Pacific Viscose (SPV) will go operational. After
two years of construction activity and a total investment of about
USD 150 mill. fiber production capacity will be increased from about
160,000 to 220,000 tons per year. But Friedrich Weninger, management
board member in charge of fiber production, notes: "Already today we
expect that demand will exceed Indonesian production capacity. We
will therefore begin with debottlenecking production right after
start-up, with the aim to increase SPV production capacity by another
18,000 tons to 238,000 tons per year".

In the special fibers sector Lenzing plans to expand production at
the TENCEL® site at Heiligenkreuz (Austria) by 10,000 tons to 60,000
tons per year. Friedrich Weninger: "The market has fully come to
realize the superior quality of our TENCEL® special fiber for
lingerie as well as for home textile applications. Exports of TENCEL®
fibers from Heiligenkreuz to China, South Korea and India just keep
on growing." Moreover, the TENCEL® site Grimsby will be remodeled to
produce a novel TENCEL® special fiber.

And lastly, the site for the production of special fibers at Lenzing,
the biggest fiber producer of the Lenzing Group, will be enhanced by
an eco-friendly ozone bleach facility for pulp production in 2010 as
part of its continuous expansion, thereby maintaining the current
degree of self supplydespite increasing fiber production. In
addition, pulp production will be increased to an annual capacity of
260,000 tons.

end of announcement euro adhoc
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ots Originaltext: Lenzing AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Lenzing AG

Mag. Angelika Guldt

Tel.: +43 (0) 7672-701-2713

Fax: +43 (0) 07672-96301

mailto:a.guldt@lenzing.com

Branche: Chemicals
ISIN: AT0000644505
WKN: 852927
Index: WBI
Börsen: Berlin / free trade
Wien / official dealing