Lenzing: Demand is Greater than Capacity

Published: March 15, 2011; 01:32 · (Vindobona)

The Upper Austrian pulp producer finds it difficult to cope with the growing demand. Further works are planned.

Lenzing: Demand is Greater than Capacity / Picture: © Lenzing

Lenzing's CEO Peter Untersperger said that there is not enough fiber production capacity presently. Capacity expansion lags behind demand. To keep the global market share of 17%, Lenzing would have to expand its capacity until 2020 from current 0.7m tons to 1.7m tons. Lenzing is currently world market leader.

Untersperger considers the company to be part of the international trend, because the global demand for cellulose fibers is increasing fast. "By 2030, the global cellulose gap will amount to eleven million tons," said Untersperger to the magazine "WirtschaftsBlatt." We cannot supply our customers with enough fiber already now. We have been sold out for eight months",added the CEO.

Reasons for the lack of pulp, the raw material for textiles and medical products as cosmetic, according to Untersperger, is the decrease of cultivated land for cotton. China in particular is growing food instead of cotton. Accordingly, cotton is getting to be more expensive than ever before.

In the next four years, capacity will be expanded by € 1.5bn, through means such as buying a third pulp mill. Another acquisition is to take place in India. The own production is to be increased by 70%.