The Lenzing Group has successfully initiated production at its new Tencel jumbo production facility, the largest in the world, at the Lenzing site in Upper Austria. The plant is in the midst of ramping up product of the high-tech wood-based fiber, which is used by some outdoor and athletic apparel brands for its drape, hand and because it uses relatively sustainable production processes.
“We are more than satisfied with the progression of the start-up curve. Based on the production process in the past days and weeks, we have reasonable grounds to believe that this latest generation of Tencel technology will completely fulfill our expectations”, said Lenzing CEO Peter Untersperger.
Lenzing’s Chief Operating Officer (COO) Friedrich Weninger described the successful start-up of production operations as a technological milestone for Tencel.
“We are optimistic that we will be able to achieve the planned production target of 30,000 tons by the end of 2014,” Weninger said. “This new Tencel facility is decisive to ensure the long-term viability of fiber production at the Lenzing site and the basis for future investments in all markets.”
This factory comprises the first time in which a single production line with an annual nominal capacity of 67,000 tons was installed. Previous Tencel production lines were usually only one-quarter as large. The new plant design incorporates lessons learned from the longstanding experience of three existing Lenzing Group Tencel production plants located in Austria, the United States and Great Britain. As a consequence, the new Tencel plant in Lenzing represents the world’s leading generation of Tencel technology.
The new design of the jumbo production line also enables investment costs to be maintained at a very competitive level of approximately €150 mn (about €2,200 per ton of capacity). This comprises the decisive approach to the further competitive scaling of Tencel fibers as a universally deployable textile and nonwoven fiber. The new, broader product portfolio on the basis of the Tencel technology successfully complements Lenzing’s specialty strategy.
With a construction time of 24 months, Lenzing completely adhered to both the budgeted investment costs as well as all timetables. The Tencel production in Lenzing secures 140 jobs at the Lenzing site.
Thanks to the new plant, annual nominal Tencel production capacity of the Lenzing Group will rise from 155,000 tons p.a. to about 220,000 tons. In this way Lenzing will further expand upon its global market leadership for Tencel fibers and offer its global customers new expansion opportunities in both the textile and nonwovens segments as well as new and innovative applications.
“The related market development activities have already been in full swing for quite a few months,” said Robert van de Kerkhof, chief commercial officer for Lenzing’s fiber business. Moreover, new technical applications will be opened up and massively expanded in the years to come.
