Lenzing AG Initiates Strategic Shift with Focus on Nonwoven Applications

Lenzing AG has announced a significant strategic transformation, concentrating on nonwoven applications and repositioning its textiles sector. This move includes the planned closure of select sites and anticipates non-cash impairment losses up to EUR 150 million in 2026. The company aims for an EBITDA margin between 20-25% and leverage below 2.5x in the mid-term. This strategic shift includes a comprehensive refinancing package, subject to the approval of an extraordinary general meeting scheduled for August 25, 2026, and new financing agreements totaling EUR 300 million.

The transformation involves consolidating Lenzing's fiber production, including the sale of its Indonesian viscose facility, PT South Pacific Viscose, and the planned phase-out of plants in Austria and the UK. The company expects to proceed with a capital increase of EUR 300 million, involving a substantial commitment from its major shareholders B&C Group and Suzano, as well as Oberbank AG, to support this endeavor. A syndicate of international banks has agreed to cover any remaining shares not subscribed by existing shareholders.