EANS-News: Lenzing AG / Lenzing: Further capacity expansion in China and Austria

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Company Information

Lenzing (euro adhoc) - Further capacity expansion in China and
Austria

The Lenzing Group, world market leader in cellulose fibers, will
invest considerable capital in the capacity expansion and
modification of its sites in Lenzing (Austria) and Nanjing (China).
The production capacity of fiber site Nanjing will be more than
doubled to 140,000 tons per year with an investment of EUR 55 mill.
at a scheduled construction period of 18 months two years. The
Lenzing site will switch production from standard viscose fibers to
modal fibers within the next fifteen months at an investment of EUR
23 mill.

Peter Untersperger, chairman of the Lenzing management board,
comments on the latest decisions: "The investment is a continuation
of our consistent expansion policy: The value of the Lenzing site as
the world's biggest producer of special cellulose fibers will grow -
and doubled capacity at the Nanjing site will meet the fast-growing
demand for standard cellulose fibers in Asia.

The new program complements the current fiber capacity expansion
program with a total investment of EUR 120 mill. launched in December
2009. The expansion in China and the full operation and subsequent
debottlenecking of the fourth line at the Indonesian subsidiary PT.
South Pacific Viscose (SPV) scheduled for May 2010 will raise the
Asian production capacity of the Lenzing Group to 378,000 tons per
year, equivalent to half of Lenzing's global fiber production
capacity. As a consequence the new investment program will increase
Lenzing fiber production to about 770.000 tons per year. Moreover, a
further viscose fiber production site is being planned in India.

There are numerous reasons for expanding modal capacity and
downsizing viscose capacity at the Lenzing site. Friedrich Weninger,
responsible management board member for the fiber business: "Modal
has very much turned out to be a global export success over the past
years, particularly in Asia. The project will develop and secure our
special fiber strategy for the Lenzing site. Integrated pulp
production there enables optimized and decisive control of the
production quality parameters from beech to fiber required for
special fibers and the site's expertise in modal production spans
decades. Moreover, remodeling will be comparatively fast and
cost-efficient."

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