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LENZING – Austrian speciality fibres business, Lenzing, has announced plans to invest more than €1bn in new lyocell fibres production facilities globally, with the first expansion phase of 100,000 tons approved in Thailand.

Thailand has favourable trade agreements with the major Asian economic blocks. The selection of Industrial Park 304 in Prachinburi, Thailand as the initial phase of the expansion was based on its excellent overall infrastructure and the sustainable biogenic energy supply, which leads to low CO2 emissions.

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The construction of a state-of-the art lyocell fibre production plant in Prachinburi (Thailand), has now been approved. The plant will have a capacity of 100,000 tons and feature investments of approximately €400m. The move accelerates the company’s business growth of its Tencel branded fibres, known for their strong sustainability credentials.

The new plant in Thailand will be the largest of its kind in the world and is supported by the Board of Investment (BOI) of Thailand. Construction will start this fall and production will commence towards the end of 2021.

“Tencel lyocell fibres are considered a benchmark in ecologically responsible fibres. This expansion underscores Lenzing’s commitment to improve the ecological footprint of the global textile industry,” said Stefan Doboczky, chief executive officer of the Lenzing Group. “This investment in Thailand represents the next consistent step in the implementation of our sCore TEN strategy and will help to further transform Lenzing into a specialty fibres company.”  

Over the coming years Lenzing will further expand at the site in Thailand, which has space for several plants. The investment in the first phase already includes the general infrastructure that will benefit future expansion. Lenzing will continue to look for potentially expanding lyocell production in other parts of the world as well.

Said Heiko Arnold, chief technology officer of the Lenzing Group: “The project has received very good attention in the engineering market. Lenzing aims at implementing the project in a strategic partnership with an international engineering company also chosen for its capability to support Lenzing’s further organic growth worldwide. Integrated teams including an international and highly skilled Lenzing workforce will work together with the engineering contractor, which will be selected soon. Commissioning of the plant and start of production will take place in the second half of 2021.”

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