
Austrian cellulosic fibre producer Lenzing Group is to acquire the remaining 30% stake in its Chinese subsidiary Lenzing Nanjing Fibers Co (LNF).
The stake is presently held by Nanjing Chemical Fibre Co (NCFC), its state-owned joint-venture partner. LNF was set up as a joint-venture operation in 2005.
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Lenzing says the deal will support its “strategic growth” as a producer of speciality fibres from renewable raw material wood in China and worldwide.
“It paves the way to set up further production lines for speciality fibres. Lenzing wants to convert LNF into a speciality fibres hub over time,” it adds.
The closing of the transaction documents is expected for the end of October. The acquisition will have a negative impact on net profit of the Lenzing Group of approx. EUR21m for the fiscal year 2018.
In May this year, the Nanjing factory in China was set up to start producing Lenzing’s eco-friendly viscose fibre, EcoVero, the only site to do so besides the firm’s home plant in Austria.

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By GlobalData