View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
March 3, 2022

Lenzing opens “world’s largest” lyocell plant in Thailand

The Lenzing Group’s new plant has a capacity of 100,000 tonnes to help serve the growing demand for sustainably produced fibres.

By Fi Forrest

Austrian cellulosic fibre producer Lenzing has completed its lyocell expansion project in Thailand, noting that the plant – which it claims is the largest of its kind in the world – started production on schedule.

Free Report
img

What is driving growth in the Global Luxury Apparel Market?

The global luxury apparel market has seen exceptional recovery since 2021, after the inevitable sales decline in 2020 due to the pandemic. This growth has largely been due to strong demand in the key market of APAC, with the lifting of restrictions leading consumers to spend more on luxury goods for events such as holidays and social occasions. This growth is only expected to continue, and GlobalData’s free report Global Luxury Apparel Market Trends, Size and Forecasts out to 2025, can assist companies in understanding the drivers behind this growth, as well as potential inhibitors and key trends affecting the market. Understanding these crucial elements will be essential for luxury brands and retailers to stay ahead of their competitors. This report provides comprehensive analysis of:
  • Luxury apparel market size at total, regional, and category level – with forecasts out to 2025
  • Market drivers and inhibitors
  • Retailer and brand market shares, 2019-2021
  • Hot issues and profiles of leading brands
  • Key trends affecting the global luxury apparel market
Read this report now if you want to maximize growth using in-depth market predictions.
by GlobalData
Enter your details here to receive your free Report.

The firm adds the facility will help it to better meet the increasing customer demand for Tencel branded lyocell fibres and also represents an important step towards strengthening its leadership position in the specialty fibre market and into a carbon-free future.

The construction of the plant in Prachinburi, around 150km northeast of Bangkok, started in the second half of 2019 and proceeded largely according to plan, despite the challenges arising from the Covid-19 pandemic, the group says.

“We are very proud of this achievement. Our sincere thanks go to the entire Lenzing team and especially to our staff in Thailand but also to many external stakeholders, who joined forces in times of a global pandemic to make this key project reality. To deliver such a huge project in time and at budget is an outstanding achievement given the challenges of the global pandemic,” says Cord Prinzhorn, CEO of Lenzing Group.

Robert van de Kerkhof, member of the managing board, adds: “The demand for our wood-based, biodegradable specialty fibres under the Tencel, Lenzing Ecovero, and Veocel brands is growing very well. In Asia in particular, we see huge growth potential for our brands based on sustainable innovation. With the production start of the lyocell plant in Thailand, Lenzing reached an important milestone in its growth journey, supporting our ambitious goal to make the textile and nonwoven industries more sustainable.” 

Lenzing adds it will continue to expand its production capacity for lyocell fibres in line with its sCore Ten strategy, which aims to generate 75% of its fibre revenue from eco-responsible specialty fibres by 2024. It notes the Thailand site offers space for several production lines, with the investment in the first phase already including general infrastructure that would benefit future expansion.

The company says, however, it will continue to look for opportunities to expand lyocell production in other parts of the world too.

“Investments in Thailand and other Lenzing sites around the world support us not only along our transformation towards becoming a supplier of eco-friendly specialty fibers but also in implementing our ambitious climate targets, thus further increasing our company value,” Prinzhorn adds.

In 2019, Lenzing made a strategic commitment to reducing its greenhouse gas emissions per tonne of product by 50% by 2030. The vision is to be climate-neutral by 2050. Due to the established infrastructure, the site in Thailand can be supplied with sustainable biogenic energy and contribute significantly to climate protection, it says.

Together with its project in Brazil and investments at its existing sites in Asia, Lenzing says it is currently implementing the largest investment programme in its corporate history at more than EUR1.5bn (US$1.13bn).

“Lenzing will continue to drive the execution of its strategic projects, which are to make a significant contribution to earnings from 2022,” the company says.

Related Companies

Free Report
img

What is driving growth in the Global Luxury Apparel Market?

The global luxury apparel market has seen exceptional recovery since 2021, after the inevitable sales decline in 2020 due to the pandemic. This growth has largely been due to strong demand in the key market of APAC, with the lifting of restrictions leading consumers to spend more on luxury goods for events such as holidays and social occasions. This growth is only expected to continue, and GlobalData’s free report Global Luxury Apparel Market Trends, Size and Forecasts out to 2025, can assist companies in understanding the drivers behind this growth, as well as potential inhibitors and key trends affecting the market. Understanding these crucial elements will be essential for luxury brands and retailers to stay ahead of their competitors. This report provides comprehensive analysis of:
  • Luxury apparel market size at total, regional, and category level – with forecasts out to 2025
  • Market drivers and inhibitors
  • Retailer and brand market shares, 2019-2021
  • Hot issues and profiles of leading brands
  • Key trends affecting the global luxury apparel market
Read this report now if you want to maximize growth using in-depth market predictions.
by GlobalData
Enter your details here to receive your free Report.

Topics in this article:
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Monday. The industry's most comprehensive news and information delivered every quarter.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Style