Printer Friendly

Update on Lenzing plans.

At a recent press conference in New York, NY, Lenzing AG, Lenzing, Austria, the largest manufacturer of rayon in the world, reported its $40 million capital expansion is proceeding on schedule, with the first phase expected to be onstream in January, 1994. The expansion will reduce production costs and increase capacity from 105 to 130 million pounds.

The company also discussed 1992 highlights at the company, which included the acquisition of BASF's rayon plant in Lowland, KY in July, the opening of an office in Charlotte, NC in November and a New York, NY office in April, 1993 and record shipments and production from Lowland in recent months. Lenzing also started-up a new fiber laboratory for testing and development work last month.

For the future, the company is going full speed ahead with its new "Lyocell" fiber, which will compete against Courtaulds' "Tencel" solvent spun cellulose fiber. Lenzing, which has had a pilot line producing Lyocell for the past year, will make a decision this year on where a commercial plant will be located, how much production will be installed and what markets will be targeted.

Lenzing is also finalizing its rayon expansion in Indonesia and debottlenecking the U.S. plant purchased from BASF. It is also evaluating expansion opportunities in emerging markets such as China, India, Vietnam and Latin America. Finally, Lenzing is in the process of completing a dissolving pulp joint venture in Brazil.

For fiscal 1992, the company did report its first loss since 1975, attributing the $54.2 million loss to a poor exchange rate and rayon downsizing in Europe. Overall, the company does not predict a strong outlook in 1993 due to continued price pressure and a European economic slowdown.
COPYRIGHT 1993 Rodman Publications, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Nonwovens Industry
Date:Jul 1, 1993
Previous Article:Investment plan set for Rhodia.
Next Article:Tambrands ousts chairman.

Related Articles
Lenzing to acquire BASF's rayon business.
Lenzing, DuPont join forces for filament testing device.
What's new in fibers.
Following up on flame retardants.
Lenzing acquires Massen nonwovens technology.
Lenzing to supply armed forces.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters