Lenzing Accelerates Strategic Transformation with ‘Grow Nonwovens, Reset Textiles’ Initiative

The company announces production optimization, financial restructuring, cost savings and a stronger focus on high-value sustainable fiber markets.

Lenzing Group has unveiled the next phase of its strategic transformation with the launch of its “Grow Nonwovens, Reset Textiles” strategy, aimed at strengthening profitability, enhancing competitiveness and reinforcing its position as a global leader in sustainable cellulose-based fiber solutions.

Led by CEO Georg Kasperkovitz and supported by the Supervisory Board, the strategy focuses on expanding the company’s nonwovens business, repositioning its textiles portfolio, strengthening its pulp operations and optimizing its global manufacturing footprint. The transformation is supported by a comprehensive refinancing plan and a sharpened performance program designed to improve long-term financial resilience.

Strategic Focus on High-Value Growth

As market dynamics continue to evolve for man-made cellulosic fibers, Lenzing is shifting its strategic focus toward higher-value applications, particularly nonwovens, while streamlining its textile business.

The company plans to accelerate growth through proprietary technologies including TreeToTextile, LENZING™ Nonwoven Technology, advanced filament solutions and next-generation flame-retardant fibers.

“Lenzing is taking decisive steps to reposition the company for long-term success in a fundamentally changing market environment,” said Georg Kasperkovitz, CEO of Lenzing Group. He added that the strategy combines a streamlined premium portfolio, stronger competitiveness and innovation while reinforcing the company’s main production site in Austria.

Expanding the Nonwovens Business

Lenzing plans substantial organic growth in its nonwovens business by 2030, driven by increasing demand for sustainable alternatives to fossil-based materials.

The company has already committed EUR 15 million in November 2025 and an additional EUR 8 million in June 2026 to expand nonwoven fiber production capacity at its Lenzing, Austria facility.

Growth initiatives include expanding existing product portfolios, developing next-generation hygiene fibers, commercializing LENZING™ Nonwoven Technology with strategic partners and upgrading the Mobile, Alabama (USA) facility into a specialty nonwovens production site.

Resetting the Textile Business

Lenzing will sharpen its focus on premium textile applications and strategic partnerships with brands and retailers across Europe and Asia.

The company plans to invest in additional TENCEL™ Modal production capacity in both Austria and China while continuing to reduce exposure to standard viscose textile fibers.

Future textile innovations will include TreeToTextile, specialty flame-retardant fibers and other high-performance sustainable fiber solutions designed for premium market segments.

Strengthening Pulp Operations

Pulp and biorefinery products will remain a key pillar of Lenzing’s business.

The company plans capacity debottlenecking projects in Brazil and Austria, alongside operational improvements and energy optimization initiatives aimed at increasing profitability and supporting future growth.

Performance Program Targets €120 Million Savings

Lenzing has expanded its performance program with a target of EUR 120 million in cost savings compared with 2025 levels.

This includes EUR 45 million in previously announced personnel cost reductions, primarily affecting administrative functions. During the first half of 2026, the company reduced headcount by 267 employees, generating annualized savings of approximately EUR 25 million.

The full savings program is expected to achieve its complete run-rate impact by the end of 2027.

Optimizing the Global Manufacturing Footprint

As part of its transformation, Lenzing will consolidate its global fiber production network.

The company plans to phase out production at its Heiligenkreuz, Austria facility by the end of 2026 and at its Grimsby, United Kingdom site by the end of 2027, while continuing the sale process for its Indonesian viscose operation, PT South Pacific Viscose.

The restructuring is intended to strengthen core manufacturing sites, including the flagship Lenzing, Austria facility, while ensuring reliable customer supply.

Lenzing stated that employee support measures will be implemented in close cooperation with employee representatives and in accordance with existing social plans and local regulations.

Financial Targets and Refinancing

The company aims to deliver an EBITDA improvement of approximately EUR 150 million, achieve an EBITDA margin of 20–25 percent, and reduce its leverage ratio below 2.5x over the medium term.

To support the transformation, Lenzing announced a comprehensive refinancing package backed by major shareholders B&C Group and Suzano, together with key lending partners.

The refinancing includes:

• A planned capital increase of up to EUR 300 million, subject to shareholder approval.
• New financing agreements of up to EUR 300 million.
• Extension of existing debt maturities through 2030.

The capital increase is underwritten by BNP Paribas, UniCredit, COMMERZBANK and Erste Group, providing additional financial flexibility for executing the transformation strategy.

Positive Preliminary Second Quarter Results

Lenzing also reported encouraging preliminary financial results for the second quarter of 2026.

Revenue reached EUR 652 million, compared with EUR 651 million in the same period of 2025, while EBITDA increased to EUR 123 million from EUR 112 million a year earlier. The company’s EBITDA margin improved to 19 percent, and net financial debt declined to EUR 1.36 billion.

According to Mathias Breuer, Chief Financial Officer of Lenzing Group, the improved results demonstrate that the company’s strategic measures are delivering positive outcomes while reinforcing the need to continue implementing the transformation program.

With its renewed focus on nonwovens, premium textile solutions, operational efficiency and financial discipline, Lenzing aims to strengthen its position as a leading global supplier of sustainable cellulose-based fibers while creating long-term value for customers, employees and shareholders.