Austria-headed cellulose fiber major Lenzing AG (Lenzing Group) has announced that it plans to invest more than EUR 1 billion in new production facilities for lyocell fibers. The first expansion phase of this ambitious growth plan, the construction of a state-of-the-art lyocell fiber production plant in Prachinburi, Thailand, has now been approved. The plant will have an annual capacity of 100 000 tonnes and feature investments of approximately EUR 400 million.
Lenzing Group is substantially increasing its production of lyocell fibers to meet the strong demand for these products and further strengthening its position as an industry leader in specialty fibers. The plant in Thailand sets a new milestone in the history of lyocell fibers and will be the largest site of its kind.
Site grading at Industrial Park 304 around 150 kilometers east of Bangkok has been completed successfully and the investment is fully supported by the Board of Investment (BOI) of Thailand. Construction will start this fall and production will commence towards the end of 2021.
TENCELlyocell fibers are considered a benchmark in ecologically responsible fibers. This expansion underscores Lenzing’s commitment to improving the ecological footprint of the global textile industry. This investment in Thailand represents the next consistent step in the implementation of our sCore TEN strategy and will help to further transform Lenzing into a specialty fibers company, said Stefan Doboczky, Chief Executive Officer of the Lenzing Group.
According to the company, Thailand has favorable trade agreements with the major Asian economic blocks. The selection of Industrial Park 304 in Prachinburi was based on its excellent overall infrastructure and the sustainable biogenic energy supply, which leads to low carbon dioxide (CO2) emissions to protect the climate.
Over the coming years, Lenzing will further expand at the site in Thailand, which has space for several plants. The investment in the first phase already includes the general infrastructure that will benefit future expansion. Lenzing will continue to look for potentially expanding lyocell production in other parts of the world as well.
The project has received very good attention in the engineering market. Lenzing aims at implementing the project in a strategic partnership with an international engineering company also chosen for its capability to support Lenzing’s further organic growth worldwide. Integrated teams including an international and highly skilled Lenzing workforce will work together with the engineering contractor, which will be selected soon. Commissioning of the plant and start of production will take place in the second half of 2021, said Heiko Arnold, Chief Technology Officer of the Lenzing Group.
