EANS-News: Lenzing AG / Lenzing Now Owns 100% Stake in Pulp Producer Biocel Paskov

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Company Information

Lenzing (euro adhoc) - Lenzing AG, listed on the benchmark index ATX
of the Vienna Stock Exchange and global market leader for man-made
cellulose fibers, has now acquired a 100% shareholding of the Czech
pulp producer Biocel Paskov A.S. Up until now Lenzing has held a 75%
stake in the company. The seller of the remaining 25% of the shares
is the Austrian Heinzel Group, which had already disposed of its 75%
majority stake to Lenzing in April 2010.

Since 2010 Lenzing has been restructuring the Biocel Paskov facility
to become a "swing capacity" producer of pulp, involving total
investments of about EUR 100 mn. Starting in the year 2013 Biocel
Paskov will be able to completely produce both paper pulp as well as
high quality dissolving pulp used in the manufacturing of cellulose
fibers. A total of 60,000 tons of dissolving pulp were already
produced in the previous year, with plans calling for a production
volume of about 115,000 tons of this pulp quality in the current
year.

In the course of 2013 Biocel Paskov will operate as one of the
world's most high-performance and advanced manufacturing plants for
this special pulp thanks to a further debottlenecking program,
increased energy efficiency and new recovery facilities. The nominal
capacity of the plant will amount to 260,000 tons of dissolving pulp
at that time. The pulp will mainly be used by the Lenzing Group for
its fiber production operations. This vertical backward integration
represents an important means for the Lenzing Group to safeguard its
raw material base, both in terms of prices and volumes.

Biocel Paskov commenced production in the year 1985 and was
subsequently modernized and expanded during the 1990s in line with
ecological standards. The Group led by the Austrian industrialist
Alfred Heinzel acquired the plant in 2001, and continued the
modernization drive. Since 2004 Biocel Paskov has been cooperating
with the neighboring sawmill operating by the Austrian Mayr-Melnhof
wood industry group, which contributes part of the raw materials
needed to manufacture pulp in the form of wood chips. Biocel Paskov
employs a work force of close to 400 people.

Further inquiry note:
Lenzing AG
Mag. Angelika Guldt
Tel.: +43 (0) 7672-701-2713
Fax: +43 (0) 7672-918-2713
mailto:a.guldt@lenzing.com

end of announcement euro adhoc
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company: Lenzing AG

A-A-4860 Lenzing
phone: +43 7672-701-0
FAX: +43 7672-96301
mail: a.guldt@lenzing.com
WWW: http://www.lenzing.com
sector: Chemicals
ISIN: AT0000644505
indexes: WBI, ATX, Prime Market
stockmarkets: free trade: Berlin, official market: Wien
language: English