Lenzing’s speciality fibre business exceeds 45% of total revenue
today Mar 14, 2019
Lenzing’s speciality fibre business has grown to exceed 45 percent of the revenue total of the business as a whole in 2018.
In 2018, Lenzing reported a revenue total of €2.18 billion which, despite a challenging business environment caused by low prices for standard viscose and poor exchange rates, was the business’ fourth best performing year in it’s history. Of the total, 45 percent came from speciality fibres, a growing product category for the company.
Last year also saw Lenzing continue working towards its plan to invest around €100 million in sustainable manufacturing technologies and production facilities by 2022. The plan is to strengthen its closed loop business model and aid customers to replace any environmentally harmful materials they may I use.
The business announced the development of Lenzing Web Technology in 2018 which is a technology platform that focuses on sustainable non-woven products to open up market opportunities in the industry. Lenzing filed 25 patent applications as part of this.
"Although 2018 proofed to be more challenging than the preceding years, it was, nevertheless, the fourth best year in the company’s history,” said the Lenzing Group’s CEO, Stefan Doboczky. “We consistently worked on the strategic imperatives of our sCore Ten corporate strategy in order to raise our pulp integration, enhance customer intimacy, increase the share of specialty fibers in revenue and to invest in new technologies and business areas."
"The very positive development of our specialty business in an expected challenging market environment for standard viscose confirms our strategic direction and our ambitious plans,” said Doboczky.
“Thanks to its specialty strategy and its strong brands based on innovation and sustainability, the Lenzing Group is significantly more resilient today than only a few years ago. However, we are not immune to global developments, and further efforts and investments in specialty fibers are required to become even more resistant to market fluctuations."
The business expects that its 2019 financials will be similar to those in 2018 despite a more challenging environment.
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