Fibre firm Lenzing has received EUR100m (US$135.3m) in funding from the European Investment Bank for the development of its Tencel fibre production.

Lenzing, which specialises in the industrial manufacture of cellulose fibres, said it is implementing a multi-annual development programme for new, high-quality Tencel products.

The Tencel fibres, manufactured industrially from wood, are used primarily in the textile industry, but also for non-woven materials and technical applications. Lenzing says it is the only manufacturer in the world to have mastered the technology for producing this latest generation of cellulose fibres on a large industrial scale.

"This partnership with the European Investment Bank is a great tribute to the achievements of our company, particularly our research and development work," said CEO Peter Untersperger.

"We are already operating three pilot Tencel plants in Europe in order to continue improving the technology and its range of applications. We still see considerable potential for growth in the future which must be explored now, as the demand for high-quality fibres manufactured in environmentally compatible processes will continue to increase."