Lenzing Opens Lyocell Plant in Thailand – Nonwovens Industry Magazine

Lenzing Group, a specialist wood-based fiber supplier, has announced the successful completion of its key lyocell expansion project in Thailand. The new plant, the largest of its kind in the world with a design capacity of 100,000 tons per year, has started production on schedule and will help to meet even better the growing customer demand for Tencel-branded lyocell fibres. For Lenzing, the project also represents an important step towards strengthening its leading position in the specialty fiber market and towards a carbon-free future.

Construction of the plant located in Industrial Park 304 in Prachinburi, about 150 kilometers northeast of Bangkok, began in the second half of 2019 and proceeded largely as planned, despite the challenges posed by the pandemic. of Covid-19. The recruitment and integration of new employees was successful. Investments (CAPEX) amounted to approx. 400 million euros.

“We are very proud of this achievement. Our sincere thanks go to the entire Lenzing team and in particular our staff in Thailand but also to many external stakeholders, who joined forces in times of global pandemic to make this key project a reality. Delivering such a massive project on time and on budget is an exceptional achievement considering the challenges of the global pandemic,” said Cord Prinzhorn, CEO of Lenzing Group.

Robert van de Kerkhof, member of the Management Board, agrees with him and adds: “The demand for our special biodegradable wood-based fibers under the brands Tencel, Lenzing Ecovero and Veocel is progressing very well. In Asia in particular, we see enormous growth potential for our brands based on sustainable innovation. With the start of production at the lyocell plant in Thailand, Lenzing has taken an important step in its growth journey, supporting our ambitious goal of making the textile and nonwovens industries more sustainable.

Environmental pollution – especially marine pollution – is one of the biggest problems of our time. The fashion industry has an extremely negative impact on the environment with its fast fashion business model and the increasing consumption of fossil resources. The lyocell production process is the most modern way to produce fibers from wood. It has been successfully applied on an industrial scale for around thirty years and is particularly environmentally friendly. The idea behind the lyocell process is to dissolve and process pulp in a closed loop without any chemical bypass.

Lenzing will continue to expand its lyocell fiber production capacity in line with its sCore TEN strategy, which aims to generate 75% of its fiber revenue from eco-responsible specialty fibers such as Tencel, Lenzing Ecovero and Veocel fibers. ‘by 2024. The Thai site offers space for several production lines. Investment in the first phase already includes general infrastructure that would benefit future expansion. However, Lenzing will continue to seek opportunities to expand lyocell production in other parts of the world as well.

“Investments in Thailand and other Lenzing locations around the world support us not only in our transformation to become an environmentally friendly specialty fiber supplier, but also in the implementation of our ambitious climate goals, thereby increasing further the value of our company,” said Prinzhorn.

In 2019, Lenzing made a strategic commitment to reduce its greenhouse gas emissions per tonne of product by 50% by 2030. The goal is to be climate neutral by 2050. Thanks to the infrastructure established, the site in Thailand can be supplied with sustainable energy. biogenic energy and make a significant contribution to climate protection.

With the key project in Brazil and the substantial investments at the existing sites in Asia, Lenzing is currently implementing the largest investment program in its company history (with more than around 1.5 billion euros). Lenzing will continue to drive the execution of its strategic projects, which are expected to make a significant contribution to results from 2022.