Lenzing Group Focuses on "Grow Nonwovens, Reset Textiles" Strategy

Lenzing Group is accelerating its transformation with the strategy "Grow Nonwovens, Reset Textiles." The company aims for a strategic focus on nonwovens, enhanced pulp production, and cost savings of EUR 120 million by 2027. This approach intends to uplift EBITDA by EUR 150 million and maintain leverage below 2.5x medium-term. The transformation, backed by shareholders and lenders, includes a capital increase and debt refinancing. Key production changes involve optimizing the global fiber network and focusing on core sites such as Lenzing, Austria, while ceasing operations in Heiligenkreuz and Grimsby by 2027.

The strategy involves developing innovative fiber technologies to penetrate higher-value markets. The "Grow Nonwovens" initiative seeks increased production capacity at Lenzing, Austria, with significant investments targeting the hygiene segment. Meanwhile, "Reset Textiles" aims to enhance premium market focus and partnerships. Additionally, there are plans for restructuring and reducing the workforce towards a leaner operation, which would result in impairment costs impacting financials in 2026.