EANS-News: Lenzing AG / Lenzing subsidiary PT. South Pacific Viscose (SPV) opens fourth production line

SPV secures its position as Asia's leading viscose fiber producer

--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------

Company Information

Subtitle: SPV secures its position as Asia's leading viscose fiber
producer

Lenzing (euro adhoc) - Lenzing's subsidiary PT. South Pacific Viscose
(SPV) officially started up its fourth production line at the
beginning of April. A total of about USD 150 mill. made the
production line the Group's biggest individual investment project in
recent years. Its annual nominal production capacity of 60,000 tons
of viscose fibers for textile and nonwovens applications raises SPV's
total annual capacity to 220,000 tons and makes it Asia's biggest
viscose fiber production site and the world's second-biggest
producer, after the parent plant at Lenzing with 255,000 tons per
year.

Peter Untersperger, chairman of the Lenzing management board, at the
inauguration in Purwakarta: "Indonesia and the whole of Asia are
Lenzing's single most important sales market. The extension of PT.
South Pacific Viscose is another milestone for the Lenzing Group. It
again marks our commitment to our customers in this part of the
world. And it is, moreover, an essential part of our corporate
strategy. With the completion of all current investment projects in
2012, about half of the Group's fiber production capacity of then
378,000 tons will be located in Asia. It is our goal to reach the
million-ton production mark by successive expansion steps and more
than half of our total cellulose fiber production will then be
generated in Asia."

Fritz Weninger, the member of the Lenzing management board
responsible for fibers, at the ceremony emphasized: "For the next
years we expect above-average demand for viscose fibers produced by
SPV. We offer our customers innovative applications, top quality,
delivery dependability and the best technical support possible:
Processors who use Lenzing fibers realize corresponding added market
value".

The new jumbo line took two years to complete and required the
extension of existing industrial infrastructure, including a
state-of-the-art 21 megawatt power station with multi-fuel fluidized
boiler and attached steam turbine, a sulfuric acid plant with a daily
capacity of 300 tons, a CS2 recovery plant, as well as process and
waste water facilities. SPV consequently conforms to the latest
environmental standards.

All in all, a total of about USD 500 mill. were invested in SPV. A
debottlenecking program will be started along with the regular
operation of line four in order to raise total production capacity by
another 18,000 tons to 238,000 tons per year.

Lenzing has been involved in SPV since 1983 and has been holding the
industrial management since the start of production. The company
raised its initial minority interest in successive steps to currently
90.56 percent. The remainder is being held by Indonesian shareholders

Production capacity has been increased more than tenfold in
successive stages from initially 20,000 tons per year. SPV is an
important supplier to the Indonesian textile industry, the one of
biggest industrial segment of Indonesia. The site´s staff of 1,656
makes the company one of the biggest employers in the region and a
major contributor to its rise over the past 30 years. SPV, moreover,
finances numerous community projects such as schools and child and
health care centers in Purwakarta.

end of announcement euro adhoc
--------------------------------------------------------------------------------

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 market