Business & Policy

VEOCEL Expands Lyocell Fiber Production to Asia

Published: March 26, 2026
Author: HFT

VEOCEL™, the flagship nonwovens brand of Lenzing AG, has expanded its production capabilities in Asia with the launch of nonwoven-grade lyocell fiber manufacturing at its facility in Prachinburi, Thailand.

Originally established in 2022 with an annual capacity of 100,000 tonnes, the plant previously focused on textile fibers and now marks a milestone as the first production site in Asia for VEOCEL™ nonwoven-grade lyocell fibers. These biodegradable, wood-based fibers are widely used in products such as baby wipes, facial masks, and personal hygiene applications.

Strengthening Regional Supply Chains

The expansion supports a “serve Asia from Asia” strategy, bringing production closer to regional customers and partners. By reducing reliance on imports from Europe, particularly Austria, the move enhances supply chain stability while significantly shortening lead times.

Localized manufacturing also contributes to sustainability goals by minimizing long-distance transportation, thereby reducing associated carbon emissions. This aligns with growing demand for environmentally responsible materials across the nonwovens sector.

Driving Sustainable Innovation

The Prachinburi facility reflects Lenzing’s strong commitment to sustainable manufacturing. It utilizes a closed-loop production process, ensuring efficient resource use and low emissions. The company has set ambitious environmental targets, including:

  • 95% biomass energy usage by 2027
  • Scope 1 and 2 carbon neutrality by 2030

The expansion further supports the transition from fossil-based synthetic materials to biodegradable, cellulosic alternatives, helping brands and manufacturers meet evolving consumer expectations for sustainable products.

Enabling Industry Transformation

With this strategic move, Lenzing aims to empower the nonwovens industry in Asia by providing reliable access to high-performance, eco-friendly fibers. The development is expected to accelerate the adoption of sustainable materials in everyday hygiene and personal care products while strengthening collaboration across the value chain.

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