The Lenzing Group announced plans to build a 100,000-ton/year Tencel lyocell plant in Thailand.
The Group aims to substantially increase its share of specialty fibers as a proportion of total revenue. Following the expansion drive already underway in Lenzing and Heiligenkreuz (both in Austria), Grimsby (U.K.) and Mobile, Alabama (U.S.), the Supervisory Board of Lenzing AG approved the proposal of the Management Board to build the next state-of-the-art facility to produce lyocell fibers in Thailand.
For constructing this plant, Lenzing is establishing a subsidiary in Thailand, and purchasing commercial property in Industrial Park 304 located in Prachinburi near Bangkok. In the coming months, the required permits and licenses as well as technical planning will be finalized. A definitive decision on constructing the new production plant will be made in the first quarter of 2018, and the plant is scheduled to be completed by the end of 2020.
The selection of Industrial Park 304 in Prachinburi was based on its excellent overall infrastructure, outstanding expansion opportunities and the sustainable biogenic energy supply. Similar to the plant in Mobile, the planned production facilities will be constructed on the basis of the latest state-of-the-art technology. This site will strengthen the worldwide lyocell network of the Lenzing Group, and will enable global customers to source Tencel fibers from Europe, North America and Asia.
Lenzing CEO Stefan Doboczky says, “The planned expansion underscores our commitment to support the business growth of our customers, which will result in offering them even more environmentally friendly products by using Tencel fibers, the world’s most sustainable botanic fibers.”
According to Doboczky, the expansion to Thailand represents the next consistent step in the implementation of its sCore TEN strategy as a means of increasing the share of specialty fibers and expanding its geographical footprint. With Asia accounting for 70% of total Lenzing Group revenue, it is logical that the next production plant for Tencel fibers is constructed in Asia.