LENZING – Significantly improved revenues and earnings were recorded by The Lenzing Group in 2021 compared to the previous year, reflecting strong demand and increasing fibre prices.
Despite substantial increases in the costs of energy, raw materials and logistics, the Austrian-headquartered company’s turnover climbed by 34.4% to €2.91 billion and net profit was €127.7 million compared to a loss of –€10.6 million for 2020.
Speciality fibres – Tencel, Ecovero and Veocel – accounted for over 72% of fibre sales.
“With the start of production at our state-of-the-art lyocell plant in Thailand a week ago, we are further strengthening our leading position as a supplier of eco-friendly speciality fibres,” said CEO Cord Prinzhorn. “The completion of our pulp mill in Brazil is also imminent and we are very proud to have been able to realise both projects on time and within budget.”
Lenzing’s capital spending during 2021 amounted to €844.3 million.
In 2019, the company became the first fibre manufacturer to set a target to reduce its carbon emissions by 50% by 2030 and to become climate neutral by 2050. These targets have been recognised by the Science Based Targets Initiative.
The partnership with Swedish pulp producer Södra marks a further milestone in Lenzing’s efforts to realise climate and sustainability goals and an expansion of capacities for pulp recovery from waste textiles is planned, with the goal of recycling 25,000 tons of used textiles per year by 2025.
During 2021, the first Tencel lyocell fibres made from wood and upcycled orange-based fibre pulp were introduced, as well as the first Veocel carbon neutral fibres for the global nonwovens market.
Wood-based, biodegradable Veocel fibre is also benefiting significantly from new regulations such as the EU’s Single-Use Plastics Directive (SUPD).
