Lenzing AG has announced a refined strategy designed to strengthen its competitiveness and global positioning in the face of challenging textile and nonwovens markets. The company will concentrate on premium, high-margin branded fibres such as Tencel, Veocel and Lenzing Ecovero, while gradually withdrawing from lower-margin commodity segments.

Chief Executive Officer Rohit Aggarwal described 2025 as a year of continued execution: “It is important to further strengthen the agility, resilience and cost position of Lenzing with the aim of long-term value creation in order to reinforce the company’s position as global market leader in sustainable cellulosic fibres.”

The revised strategy includes a review of the Indonesian production site, with a potential sale under consideration. At the same time, more than EUR 100 million in investments are planned for the company’s Austrian sites in Lenzing and Heiligenkreuz. These investments are intended to reinforce their status as innovation and production hubs for environmentally responsible speciality fibres.

To secure long-term competitiveness, Lenzing will implement significant cost-saving measures. Approximately 600 jobs in Austria will be reduced by 2027, generating annual savings of more than EUR 45 million. The company stressed that reductions will be carried out in accordance with an agreed social plan. Additional savings will come from energy optimisation and operational excellence programmes across all plants.

Georg Kasperkovitz, Chief Operating Officer, underlined the necessity of the measures: “Cutting labour cost is just one of several elements to increase profitability and unlock Lenzing’s value. Lenzing will remain a major industrial company in Austria, also strengthened by intended local investments exceeding EUR 100 million.”

The company expects global demand for regenerated cellulosic fibres to grow by 5–6% annually over the next five years, driven by population growth, limited cotton supply and increasing demand for sustainable materials. Lenzing aims to capture above-average growth through expansion in nonwovens, hygiene, filtration, packaging, medical and industrial applications, supported by enhanced innovation partnerships with customers

Despite current global uncertainties, including trade conflicts and subdued consumer sentiment, Lenzing has confirmed its EBITDA guidance for 2025. The company targets an EBITDA of around EUR 550 million by 2027, assuming stable market and geopolitical conditions.

www.lenzing.com