To help meet strong demand for its specialty fibres, Austrian cellulosic fibre producer Lenzing Group is to build what it claims will be the world’s largest lyocell fibre plant in Thailand.

The facility is part of its bid to invest more than EUR1bn (US$1.13bn) in new lyocell production, and the first phase will see the construction of a lyocell fibre production plant in Prachinburi, around 150 kilometers east of Bangkok. The plant will have a capacity of 100,000 tonnes and feature investments of about EUR400m. Construction will start in the autumn, with production due to begin towards the end of 2021.

“Tencel lyocell fibres are considered a benchmark in ecologically responsible fibres. This expansion underscores Lenzing’s commitment to improve the ecological footprint of the global textile industry,” says Stefan Doboczky, CEO of the Lenzing Group. “This investment in Thailand represents the next consistent step in the implementation of our sCore TEN strategy and will help to further transform Lenzing into a specialty fibres company.”

Thailand has favourable trade agreements with the major Asian economic blocks, and over the coming years Lenzing intends to further expand at the site in Thailand, which has space for several plants. 

The company says it will also continue to look to potentially expand lyocell production in other parts of the world as well.

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Last week, the firm pledged to invest EUR100m (US$113.8m) over the coming years to reduce carbon emissions both inside its operations and in its supply chain as it aims to become the world’s first carbon neutral fibre producer.