EANS-News: Lenzing AG / Lenzing subsidiary SPV (Indonesia)takes up test operation of fourth fiber production line

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Company Information

Lenzing (euro adhoc) - The Indonesian subsidiary of Lenzing AG, PT.
South Pacific Viscose (SPV) has started up first successful trials of
its new fourth production line. Regular operation is expected to
commence in the course of the second quarter. The new line will
produce viscose fibers for textile applications and for the nonwovens
industry. Production is intended for the domestic Indonesian market,
as well as for export.

A total investment of about USD 150 mill. makes the construction of
the fourth SPV line the biggest individual investment project of the
Lenzing Group in recent years. Up to now a total of more than USD 500
mill. have been invested into SPV. The project took 18 months to
complete, with key components supplied by Lenzing's subsidiary
Lenzing Technik. The additional 60,000 tons of nominal annual
capacity of this jumbo line boost total SPV capacity to 220,000 tons
of viscose fibers per year, maintaining SPV's position as the leading
Asian, and the world's second-biggest viscose fiber production site
after Lenzing in Upper Austria with its annual capacity of about
255,000 tons. SPV's sales are going to exceed USD 400 mill. over the
next years. The overall production capacity of the Lenzing Group with
fiber productions sites in Austria, Indonesia, China, Great Britain
and the United States will for the present be increased to about
670.000 tons of cellulose fibers.

Due to the strong demand for Lenzing fibers, a further
debottlenecking program will be started along with the start-up of
regular production. This will, still in 2010, increase SPV's total
annual capacity by another 18,000 tons to 238,000 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

Head of Corporate Communications

Mag. Angelika Guldt

Phone: +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