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Lenzing Group

ESPOO, Finland, May 12, 2020 (Press Release) -Valmet will supply an ash crystallizer plant with a capacity of 300 tons of ash per day to LD Celulose S.A. in Brazil. The ash crystallizer delivery is part of Lenzing’s and Duratex’s joint venture LD Celulose’s project to build a new 500,000 ton/year dissolving pulp mill in Minas Gerais state, Brazil. In January Valmet announced an extensive technology and automation delivery for the project. The new mill is scheduled to start up in 2022.

The order was included in Valmet's orders received of the first quarter 2020. The value of the order is not disclosed. The value of a delivery of this size and scope is typically around EUR 10-15 million.

“Our new pulp mill will have a positive socioeconomic impact throughout the region. When choosing partners for this project we have emphasized reliability, energy efficiency and best environmental practices. We chose Valmet to deliver their ash crystallization solution because the Valmet-concept will fulfill our request in the best way,” says Roland Feiner, Chemical Recovery Implementation Manager, LD Celulose.

“Valmet was chosen as the key technology provider for LD Celulose’s new dissolving pulp mill project earlier this year and we are very happy to widen the cooperation now with the delivery of ash crystallizer. Our ash crystallization technology is well suited for large pulp mills and represents proven technology that provides the mill with better environmental performance and increased production efficiency,” says Fernando Scucuglia, Director, Pulp and Energy, South America, Valmet.

Information about Valmet’s delivery

The Valmet Ash Crystallizer will have capacity of 300 tons of ash per day and will recover mill chemicals and remove non-process elements, primarily chloride and potassium, from the mill’s liquor cycle.

“This will be the third ash crystallization system delivery from Valmet. Our largest installation with a capacity of 920 tons ash per day is in Indonesia and another 480 tons per day ash crystallizer in China. This third installation will be a standalone plant, which means that it will have a high degree of independence from other mill processes,” tells Fredrik Kall, Director for Evaporation, Ash and Bio technologies, Pulp and Energy business line, Valmet.

LD Celulose’s upcoming 500,000 ton/year dissolving pulp mill is located in the cities of Indianópolis and Araguari in Minas Gerais state in Brazil. With this new addition of ash treatment system, Valmet’s total delivery includes now a fiber line, a pulp drying and baling line, an evaporation plant, a white liquor plant, an ash crystallization plant and a mill-wide automation system.

Information about the customer LD Celulose S.A.

LD Celulose is a joint venture where Lenzing holds a 51 percent and Duratex a 49 percent stake.

The Lenzing Group, headquartered in Austria, is an international company focusing on high-quality, wood-based cellulose fibers that are used in the textile industry, in the nonwovens industry for hygiene products, in protective wear and in industrial applications. Dissolving wood pulp is processed from wood and marketed under the brands TENCEL™ for textile applications, VEOCEL™ for nonwovens and LENZING™ for special fiber applications in other areas and other products. The annual turnover of the Lenzing Group is above EUR 2,000 million.

Duratex is the largest producer of industrialized wood panels in the southern hemisphere. The company has three business areas: Wood, Ceramic tiles and Sanitary ware, metals, electric showerheads and faucets. The Wood division covers wood products and forestry, producing eucalyptus in more than 251 thousand hectares of forests. Duratex’s head quarter is in the city and state of São Paulo and it has seven forestry units and 16 industrial facilities in Brazil and three production facilities in Colombia.

VALMET

Corporate Communications

Valmet is the leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. We aim to become the global champion in serving our customers.

Valmet's strong technology offering includes pulp mills, tissue, board and paper production lines, as well as power plants for bioenergy production. Our advanced services and automation solutions improve the reliability and performance of our customers' processes and enhance the effective utilization of raw materials and energy.

Valmet's net sales in 2019 were approximately EUR 3.5 billion. Our more than 13,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward – every day. Valmet's head office is in Espoo, Finland and its shares are listed on the Nasdaq Helsinki.

Valmet to supply ash crystallizer plant and treatment system at LD Celulose's facility in Brazil

Posted in: Bio-Insight 05/12/2020 - 04:16

ESPOO, Finland, May 12, 2020 (Press Release) -Valmet will supply an ash crystallizer plant with a capacity of 300 tons of ash per day to LD Celulose S.A. in Brazil. The ash crystallizer delivery is part of Lenzing’s and Duratex’s joint venture LD Celulose’s project to build a new 500,000 ton/year dissolving pulp mill in Minas Gerais state, Brazil. In January Valmet announced an extensive technology and automation delivery for the project. The new mill is scheduled to start up in 2022.

The order was included in Valmet's orders received of the first quarter 2020. The value of the order is not disclosed. The value of a delivery of this size and scope is typically around EUR 10-15 million.

“Our new pulp mill will have a positive socioeconomic impact throughout the region. When choosing partners for this project we have emphasized reliability, energy efficiency and best environmental practices. We chose Valmet to deliver their ash crystallization solution because the Valmet-concept will fulfill our request in the best way,” says Roland Feiner, Chemical Recovery Implementation Manager, LD Celulose.

“Valmet was chosen as the key technology provider for LD Celulose’s new dissolving pulp mill project earlier this year and we are very happy to widen the cooperation now with the delivery of ash crystallizer. Our ash crystallization technology is well suited for large pulp mills and represents proven technology that provides the mill with better environmental performance and increased production efficiency,” says Fernando Scucuglia, Director, Pulp and Energy, South America, Valmet.

Information about Valmet’s delivery

The Valmet Ash Crystallizer will have capacity of 300 tons of ash per day and will recover mill chemicals and remove non-process elements, primarily chloride and potassium, from the mill’s liquor cycle.

“This will be the third ash crystallization system delivery from Valmet. Our largest installation with a capacity of 920 tons ash per day is in Indonesia and another 480 tons per day ash crystallizer in China. This third installation will be a standalone plant, which means that it will have a high degree of independence from other mill processes,” tells Fredrik Kall, Director for Evaporation, Ash and Bio technologies, Pulp and Energy business line, Valmet.

LD Celulose’s upcoming 500,000 ton/year dissolving pulp mill is located in the cities of Indianópolis and Araguari in Minas Gerais state in Brazil. With this new addition of ash treatment system, Valmet’s total delivery includes now a fiber line, a pulp drying and baling line, an evaporation plant, a white liquor plant, an ash crystallization plant and a mill-wide automation system.

Information about the customer LD Celulose S.A.

LD Celulose is a joint venture where Lenzing holds a 51 percent and Duratex a 49 percent stake.

The Lenzing Group, headquartered in Austria, is an international company focusing on high-quality, wood-based cellulose fibers that are used in the textile industry, in the nonwovens industry for hygiene products, in protective wear and in industrial applications. Dissolving wood pulp is processed from wood and marketed under the brands TENCEL™ for textile applications, VEOCEL™ for nonwovens and LENZING™ for special fiber applications in other areas and other products. The annual turnover of the Lenzing Group is above EUR 2,000 million.

Duratex is the largest producer of industrialized wood panels in the southern hemisphere. The company has three business areas: Wood, Ceramic tiles and Sanitary ware, metals, electric showerheads and faucets. The Wood division covers wood products and forestry, producing eucalyptus in more than 251 thousand hectares of forests. Duratex’s head quarter is in the city and state of São Paulo and it has seven forestry units and 16 industrial facilities in Brazil and three production facilities in Colombia.

VALMET

Corporate Communications

Valmet is the leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. We aim to become the global champion in serving our customers.

Valmet's strong technology offering includes pulp mills, tissue, board and paper production lines, as well as power plants for bioenergy production. Our advanced services and automation solutions improve the reliability and performance of our customers' processes and enhance the effective utilization of raw materials and energy.

Valmet's net sales in 2019 were approximately EUR 3.5 billion. Our more than 13,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward – every day. Valmet's head office is in Espoo, Finland and its shares are listed on the Nasdaq Helsinki.

Read more
    LENZING, Austria, March 20, 2020 (Press Release) -
  • First fiber producer to have an approved science-based target – CO2 neutrality by 2050
  • Breakthrough in REFIBRA technology – worn textiles can also be used as fiber raw material
  • Pioneer in the introduction of blockchain technology for fiber recognition
  • On track to meet all sustainability targets

Just ahead of the “Day of Forests” on March 21, which the FAO (Food and Agricultural Organization of the United Nations) introduced in the 1970s in response to global deforestation, the Lenzing Group presents its Sustainability Report 2019. This sets out how the company is actively dealing with the global challenges.

Lenzing produces fibers from the renewable raw material wood and is well known among its customers and partners in the global textile and nonwoven fabric industry for the clear position it takes as a sustainable producer. It is no accident that the new report is appearing on the International Day of Forests. Lenzing’s sustainable practices in procurement, especially for wood and pulp, were once again ranked as leading in the 2019 reporting year (Hot Button Report).

“Stand up! Against business as usual”

Under the motto “Stand up! Against business as usual”, Lenzing emphasizes its wider responsibilities over and above its products. Business-as-usual scenarios have to be overcome, in particular for climate protection. With a science-based target, Lenzing is taking action to master the problems caused by climate change. The Lenzing Group is committed to reducing its greenhouse gas emissions per ton of product by 50 percent by 2030 (baseline: 2017). The Science Based Targets initiative has approved Lenzing’s climate target as science-based.

“Climate change is the most daunting challenge humanity faces. By making the strategic commitment to be climate-neutral by 2050, we will contribute to reducing the speed of global warming and to accomplishing the targets of the Paris climate agreement. Despite the substantial investment that is necessary, we are convinced that this is not only a very responsible step but that it will also be a value-generating move”, says Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “The big challenges of our day demand new answers. Lenzing is at the forefront in being part of the solution.”

Breakthrough in REFIBRA technology

One of Lenzing’s strategic principles under its “Naturally positive” sustainability strategy and a focus in the 2019 Sustainability Report is the circular economy – an area in which Lenzing makes significant contributions. To address the enormous textile waste challenges of industry and society, Lenzing has developed a unique recycling technology branded REFIBRA™. This technology enables garment production waste to be reprocessed into fibers. By recycling worn garments for the first time in the production of TENCEL x REFIBRA fibers, Lenzing achieved a further milestone in 2019 in establishing this pioneering technology in the global market.

“REFIBRA combines the production technology of lyocell fibers, which are widely recognized as being the most environmentally responsible wood-based cellulosic fibers, with a closed-loop production process and the recycling of cotton materials”, says Robert van de Kerkhof, Chief Commercial Officer of the Lenzing Group. “Lenzing’s vision is to turn the recycling of textile waste into a common standard process like paper recycling. This includes recycling fabrics and garments made from Lenzing materials. We want Lenzing fibers produced with REFIBRA™ technology to contain up to 50 percent of recycled materials”, states van de Kerkhof.

Transparency as the basis for transformation

Aside from climate protection and the efficient use of raw materials, transparency along the value chain also represents a huge challenge and, at the same time, forms the basis for greening the industry. Lenzing offers an innovative solution based on blockchain technology in cooperation with TextileGenesis. This enables customers and consumers to trace the production of a garment back to the raw material by simply scanning a barcode. In 2019, Lenzing presented its first pilot project at the Hong Kong Fashion Summit.

Sustainability targets

In its sustainability strategy, Lenzing has defined seven core areas in which it makes significant direct contributions to the attainment of several Sustainable Development Goals of the United Nations (SDGs). In those areas, Lenzing has set concrete, ambitious targets, and the Lenzing Group continued to work hard to achieve them in the reporting year.

Significant improvements were achieved in the following areas:

  • 9 percent saving in specific primary energy consumption and 8 percent reduction in specific greenhouse gas emissions (base year in both cases: 2014)
  • Reduction of about 30 percent in sulfur emissions from production
  • Reduction of about 30 percent in sulfur dioxide emissions from energy production
  • 7 percent reduction in specific water consumption compared to the baseline 2014 ˜ Reduction in other waste water effluents

About the Lenzing Group

The Lenzing Group stands for ecologically responsible production of specialty fibers made from the renewable raw material wood. As an innovation leader, Lenzing is a partner of global textile and nonwoven manufacturers and drives many new technological developments.

The Lenzing Group’s high-quality fibers form the basis for a variety of textile applications ranging from elegant ladies clothing to versatile denims and high-performance sports clothing. Due to their consistent high quality, their biodegradability and compostability Lenzing fibers are also highly suitable for hygiene products and agricultural applications.

The business model of the Lenzing Group goes far beyond that of a traditional fiber producer. Together with its customers and partners, Lenzing develops innovative products along the value chain, creating added value for consumers. The Lenzing Group strives for the efficient utilization and processing of all raw materials and offers solutions to help redirect the textile sector towards a closed-loop economy.

Lenzing publishes its Sustainability Report 2019

Posted in: Environment 03/20/2020 - 03:28
    LENZING, Austria, March 20, 2020 (Press Release) -
  • First fiber producer to have an approved science-based target – CO2 neutrality by 2050
  • Breakthrough in REFIBRA technology – worn textiles can also be used as fiber raw material
  • Pioneer in the introduction of blockchain technology for fiber recognition
  • On track to meet all sustainability targets

Just ahead of the “Day of Forests” on March 21, which the FAO (Food and Agricultural Organization of the United Nations) introduced in the 1970s in response to global deforestation, the Lenzing Group presents its Sustainability Report 2019. This sets out how the company is actively dealing with the global challenges.

Lenzing produces fibers from the renewable raw material wood and is well known among its customers and partners in the global textile and nonwoven fabric industry for the clear position it takes as a sustainable producer. It is no accident that the new report is appearing on the International Day of Forests. Lenzing’s sustainable practices in procurement, especially for wood and pulp, were once again ranked as leading in the 2019 reporting year (Hot Button Report).

“Stand up! Against business as usual”

Under the motto “Stand up! Against business as usual”, Lenzing emphasizes its wider responsibilities over and above its products. Business-as-usual scenarios have to be overcome, in particular for climate protection. With a science-based target, Lenzing is taking action to master the problems caused by climate change. The Lenzing Group is committed to reducing its greenhouse gas emissions per ton of product by 50 percent by 2030 (baseline: 2017). The Science Based Targets initiative has approved Lenzing’s climate target as science-based.

“Climate change is the most daunting challenge humanity faces. By making the strategic commitment to be climate-neutral by 2050, we will contribute to reducing the speed of global warming and to accomplishing the targets of the Paris climate agreement. Despite the substantial investment that is necessary, we are convinced that this is not only a very responsible step but that it will also be a value-generating move”, says Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “The big challenges of our day demand new answers. Lenzing is at the forefront in being part of the solution.”

Breakthrough in REFIBRA technology

One of Lenzing’s strategic principles under its “Naturally positive” sustainability strategy and a focus in the 2019 Sustainability Report is the circular economy – an area in which Lenzing makes significant contributions. To address the enormous textile waste challenges of industry and society, Lenzing has developed a unique recycling technology branded REFIBRA™. This technology enables garment production waste to be reprocessed into fibers. By recycling worn garments for the first time in the production of TENCEL x REFIBRA fibers, Lenzing achieved a further milestone in 2019 in establishing this pioneering technology in the global market.

“REFIBRA combines the production technology of lyocell fibers, which are widely recognized as being the most environmentally responsible wood-based cellulosic fibers, with a closed-loop production process and the recycling of cotton materials”, says Robert van de Kerkhof, Chief Commercial Officer of the Lenzing Group. “Lenzing’s vision is to turn the recycling of textile waste into a common standard process like paper recycling. This includes recycling fabrics and garments made from Lenzing materials. We want Lenzing fibers produced with REFIBRA™ technology to contain up to 50 percent of recycled materials”, states van de Kerkhof.

Transparency as the basis for transformation

Aside from climate protection and the efficient use of raw materials, transparency along the value chain also represents a huge challenge and, at the same time, forms the basis for greening the industry. Lenzing offers an innovative solution based on blockchain technology in cooperation with TextileGenesis. This enables customers and consumers to trace the production of a garment back to the raw material by simply scanning a barcode. In 2019, Lenzing presented its first pilot project at the Hong Kong Fashion Summit.

Sustainability targets

In its sustainability strategy, Lenzing has defined seven core areas in which it makes significant direct contributions to the attainment of several Sustainable Development Goals of the United Nations (SDGs). In those areas, Lenzing has set concrete, ambitious targets, and the Lenzing Group continued to work hard to achieve them in the reporting year.

Significant improvements were achieved in the following areas:

  • 9 percent saving in specific primary energy consumption and 8 percent reduction in specific greenhouse gas emissions (base year in both cases: 2014)
  • Reduction of about 30 percent in sulfur emissions from production
  • Reduction of about 30 percent in sulfur dioxide emissions from energy production
  • 7 percent reduction in specific water consumption compared to the baseline 2014 ˜ Reduction in other waste water effluents

About the Lenzing Group

The Lenzing Group stands for ecologically responsible production of specialty fibers made from the renewable raw material wood. As an innovation leader, Lenzing is a partner of global textile and nonwoven manufacturers and drives many new technological developments.

The Lenzing Group’s high-quality fibers form the basis for a variety of textile applications ranging from elegant ladies clothing to versatile denims and high-performance sports clothing. Due to their consistent high quality, their biodegradability and compostability Lenzing fibers are also highly suitable for hygiene products and agricultural applications.

The business model of the Lenzing Group goes far beyond that of a traditional fiber producer. Together with its customers and partners, Lenzing develops innovative products along the value chain, creating added value for consumers. The Lenzing Group strives for the efficient utilization and processing of all raw materials and offers solutions to help redirect the textile sector towards a closed-loop economy.

Read more

NANJING, China, Feb. 21, 2020 (Press Release) -Following its temporary cutting back of production at the Nanjing site in China, Lenzing has now once again ramped up operations on all production lines to reach full capacity. Recently supply shortages of important raw materials arose as a result of intense transport controls in connection with the current situation surrounding the coronavirus. For this reason, output from two production lines was scaled back for a short time. All production lines are now fully operational again after the successful resumption of the required supplies to the manufacturing facility.

About the Lenzing Group

The Lenzing Group stands for ecologically responsible production of specialty fibers made from the renewable raw material wood. As an innovation leader, Lenzing is a partner of global textile and nonwoven manufacturers and drives many new technological developments.

The Lenzing Group’s high-quality fibers form the basis for a variety of textile applications ranging from elegant ladies clothing to versatile denims and high-performance sports clothing. Due to their consistent high quality, their biodegradability and compostability Lenzing fibers are also highly suitable for hygiene products and agricultural applications.

The business model of the Lenzing Group goes far beyond that of a traditional fiber producer. Together with its customers and partners, Lenzing develops innovative products along the value chain, creating added value for consumers. The Lenzing Group strives for the efficient utilization and processing of all raw materials and offers solutions to help redirect the textile sector towards a closed-loop economy.

Lenzing ramps up operations to full capacity at its production site in Nanjing, China

Posted in: Mills 02/21/2020 - 02:42

NANJING, China, Feb. 21, 2020 (Press Release) -Following its temporary cutting back of production at the Nanjing site in China, Lenzing has now once again ramped up operations on all production lines to reach full capacity. Recently supply shortages of important raw materials arose as a result of intense transport controls in connection with the current situation surrounding the coronavirus. For this reason, output from two production lines was scaled back for a short time. All production lines are now fully operational again after the successful resumption of the required supplies to the manufacturing facility.

About the Lenzing Group

The Lenzing Group stands for ecologically responsible production of specialty fibers made from the renewable raw material wood. As an innovation leader, Lenzing is a partner of global textile and nonwoven manufacturers and drives many new technological developments.

The Lenzing Group’s high-quality fibers form the basis for a variety of textile applications ranging from elegant ladies clothing to versatile denims and high-performance sports clothing. Due to their consistent high quality, their biodegradability and compostability Lenzing fibers are also highly suitable for hygiene products and agricultural applications.

The business model of the Lenzing Group goes far beyond that of a traditional fiber producer. Together with its customers and partners, Lenzing develops innovative products along the value chain, creating added value for consumers. The Lenzing Group strives for the efficient utilization and processing of all raw materials and offers solutions to help redirect the textile sector towards a closed-loop economy.

Read more

ESPOO, Finland, Jan. 23, 2020 (Press Release) -Valmet will deliver key process islands for Lenzing’s and Duratex’s joint venture named LD Celulose S.A. The new 500,000 ton/year dissolving pulp mill is located in the cities of Indianópolis and Araguari in Minas Gerais state, Brazil. Valmet’s delivery includes a fiber line, a pulp drying and baling line, an evaporation plant, a white liquor plant and a mill-wide automation system.

The order is included in Valmet's orders received of the first quarter 2020. The value of the order is not disclosed. The value of a delivery of this size and scope is typically around EUR 200-250 million.

Valmet’s delivery is part of the Lenzing and Duratex joint venture investment of approximately USD 1.3 bn in the 500,000 tonnes dissolving wood pulp mill where Lenzing holds a 51 percent and Duratex a 49 percent stake. The start-up of the new mill is planned for the first half of 2022 and will create approximately 8,000 direct jobs during the construction phase. When it is ready, LD Celulose S.A. will employ approximately 1,100 people to operate the industrial plant and the plantations that will supply it. The dissolving pulp is a key raw material for manufacturing Lenzing’s wood-based textile and speciality fibers.

“Wood-based cellulosic fibers offer an important contribution to enhance sustainability in the textile industry and this investment is in line with our growth strategy and a key milestone to structurally strengthen our cost leadership position. In planning the new production facility, particular importance was given to sustainability aspects. The plant will be among the most productive and energy-efficient mills in the world,” states Stefan Doboczky, CEO of the Lenzing Group.

“LD Celulose S.A. will bring a positive socioeconomic impact throughout the region. We are working with the best environmental practices and with leading companies in the pulp industry, such as Valmet,” emphasizes Luís Künzel, CEO of LD Celulose S.A.

“With our good references in dissolving pulp production technology and strong presence in Brazil we were able to meet the customer’s needs of high quality and energy efficiency as well as supporting high productivity and reliability with our automation solutions. We are happy to be a key partner in delivering a world class mill for Lenzing and Duratex and thus being part of turning renewable raw materials for sustainable textile fibers,” says Bertel Karlstedt, President, Pulp and Energy Business Line, Valmet.

Information about Valmet’s delivery

Valmet will supply key process islands with an extended scope of supply. Valmet’s technology is proven for dissolving pulp production with several references. The equipment for this project is tailored for high availability and energy efficiency resulting in low operating costs.

The fiber line features Valmet TwinRoll technology for high washing efficiency with low chemical and water consumption. The pulp drying and baling line secures flexibility and high-quality pulp with easy operation supported by Valmet Quality Control System. The evaporation plant features Valmet Tubel technology for high availability and produces clean condensate quality for 100% reuse in the mill. The white liquor plant includes recausticizing and lime kiln and is designed for high reliability and less maintenance.

The mill-wide automation system, Valmet DNA, offers unique integration with process solutions including process analyzers. In addition, the delivery includes Valmet Industrial Internet solutions for Operator Training Simulator for the whole plant as well as basic hardware for connectivity for Performance Center services.

Information about the customers Lenzing and Duratex

The Lenzing Group headquartered in Austria is an international company of wood-based cellulose fibers. These high quality fibers are used in the textile industry, in the nonwovens industry for hygiene products and are also used in work and protective wear and in industrial applications. Dissolving wood pulp is subsequently processed from the raw material wood and marketed under the brands TENCEL™ for textile applications, VEOCEL™ for nonwovens and LENZING™ for special fiber applications in other areas and other products. The annual turnover of the Lenzing Group is above EUR 2,000 million.

Duratex is the largest producer of industrialized wood panels in the southern hemisphere. The company has three business areas: Wood, Ceramic tiles and Sanitary ware, metals, electric showerheads and faucets. The Wood division covers wood products and forestry, producing eucalyptus in more than 251 thousand hectares of forests. Duratex’s head quarter is located in the city and state of São Paulo and it has seven forestry units and 16 industrial facilities in Brazil and three production facilities in Colombia.

VALMET

Corporate Communications

Valmet is the leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. We aim to become the global champion in serving our customers.

Valmet's strong technology offering includes pulp mills, tissue, board and paper production lines, as well as power plants for bioenergy production. Our advanced services and automation solutions improve the reliability and performance of our customers' processes and enhance the effective utilization of raw materials and energy.

Valmet's net sales in 2018 were approximately EUR 3.3 billion. Our more than 13,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward - every day. Valmet's head office is in Espoo, Finland and its shares are listed on the Nasdaq Helsinki.

Valmet to deliver key pulp mill technology and automation for Lenzing’s and Duratex’s joint pulp mill project in Brazil

Posted in: Mills 01/23/2020 - 04:12

ESPOO, Finland, Jan. 23, 2020 (Press Release) -Valmet will deliver key process islands for Lenzing’s and Duratex’s joint venture named LD Celulose S.A. The new 500,000 ton/year dissolving pulp mill is located in the cities of Indianópolis and Araguari in Minas Gerais state, Brazil. Valmet’s delivery includes a fiber line, a pulp drying and baling line, an evaporation plant, a white liquor plant and a mill-wide automation system.

The order is included in Valmet's orders received of the first quarter 2020. The value of the order is not disclosed. The value of a delivery of this size and scope is typically around EUR 200-250 million.

Valmet’s delivery is part of the Lenzing and Duratex joint venture investment of approximately USD 1.3 bn in the 500,000 tonnes dissolving wood pulp mill where Lenzing holds a 51 percent and Duratex a 49 percent stake. The start-up of the new mill is planned for the first half of 2022 and will create approximately 8,000 direct jobs during the construction phase. When it is ready, LD Celulose S.A. will employ approximately 1,100 people to operate the industrial plant and the plantations that will supply it. The dissolving pulp is a key raw material for manufacturing Lenzing’s wood-based textile and speciality fibers.

“Wood-based cellulosic fibers offer an important contribution to enhance sustainability in the textile industry and this investment is in line with our growth strategy and a key milestone to structurally strengthen our cost leadership position. In planning the new production facility, particular importance was given to sustainability aspects. The plant will be among the most productive and energy-efficient mills in the world,” states Stefan Doboczky, CEO of the Lenzing Group.

“LD Celulose S.A. will bring a positive socioeconomic impact throughout the region. We are working with the best environmental practices and with leading companies in the pulp industry, such as Valmet,” emphasizes Luís Künzel, CEO of LD Celulose S.A.

“With our good references in dissolving pulp production technology and strong presence in Brazil we were able to meet the customer’s needs of high quality and energy efficiency as well as supporting high productivity and reliability with our automation solutions. We are happy to be a key partner in delivering a world class mill for Lenzing and Duratex and thus being part of turning renewable raw materials for sustainable textile fibers,” says Bertel Karlstedt, President, Pulp and Energy Business Line, Valmet.

Information about Valmet’s delivery

Valmet will supply key process islands with an extended scope of supply. Valmet’s technology is proven for dissolving pulp production with several references. The equipment for this project is tailored for high availability and energy efficiency resulting in low operating costs.

The fiber line features Valmet TwinRoll technology for high washing efficiency with low chemical and water consumption. The pulp drying and baling line secures flexibility and high-quality pulp with easy operation supported by Valmet Quality Control System. The evaporation plant features Valmet Tubel technology for high availability and produces clean condensate quality for 100% reuse in the mill. The white liquor plant includes recausticizing and lime kiln and is designed for high reliability and less maintenance.

The mill-wide automation system, Valmet DNA, offers unique integration with process solutions including process analyzers. In addition, the delivery includes Valmet Industrial Internet solutions for Operator Training Simulator for the whole plant as well as basic hardware for connectivity for Performance Center services.

Information about the customers Lenzing and Duratex

The Lenzing Group headquartered in Austria is an international company of wood-based cellulose fibers. These high quality fibers are used in the textile industry, in the nonwovens industry for hygiene products and are also used in work and protective wear and in industrial applications. Dissolving wood pulp is subsequently processed from the raw material wood and marketed under the brands TENCEL™ for textile applications, VEOCEL™ for nonwovens and LENZING™ for special fiber applications in other areas and other products. The annual turnover of the Lenzing Group is above EUR 2,000 million.

Duratex is the largest producer of industrialized wood panels in the southern hemisphere. The company has three business areas: Wood, Ceramic tiles and Sanitary ware, metals, electric showerheads and faucets. The Wood division covers wood products and forestry, producing eucalyptus in more than 251 thousand hectares of forests. Duratex’s head quarter is located in the city and state of São Paulo and it has seven forestry units and 16 industrial facilities in Brazil and three production facilities in Colombia.

VALMET

Corporate Communications

Valmet is the leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. We aim to become the global champion in serving our customers.

Valmet's strong technology offering includes pulp mills, tissue, board and paper production lines, as well as power plants for bioenergy production. Our advanced services and automation solutions improve the reliability and performance of our customers' processes and enhance the effective utilization of raw materials and energy.

Valmet's net sales in 2018 were approximately EUR 3.3 billion. Our more than 13,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward - every day. Valmet's head office is in Espoo, Finland and its shares are listed on the Nasdaq Helsinki.

Read more

LENZING, Austria, Jan. 14, 2020 (Press Release) -As part of its sustainability strategy “Naturally positive”, the Lenzing Group strives to ensure an intact environment and the protection of forests as an important part of the ecosystem. Against this backdrop, Lenzing initiated a project in Albania designed to promote sustainable forestry and improve local living conditions. As a best practice example, 20 hectares of degenerated land will be recultivated with forest and fruit trees in cooperation with the local population and various NGOs. Moreover, concepts for sustainable forestry will be developed with local schools.

Important measures benefit Albanian forests

Albania’s forest areas rank among the European regions with the most extensive room for improvement. New approaches to manage the forests are necessary in order to effectively cope with environmental problems and to fulfil the current needs of society with respect to the sustainable use of natural resources. Lenzing is supporting this process with this reforestation project. In this way, it is moving ahead with implementing the Sustainable Development Goals (SDGs) of the United Nations to which the company is committed.

“Lenzing has longstanding experience in responsible wood sourcing and extensive forestry expertise. This project shows that the Lenzingers passionately stand up for the viability of trees and forests and champion the interests of people above and beyond their daily business and fiber production. The idea for this project at this site came from Lenzing’s wood procurement team. Our forest experts have underlined the important role reforestation can play, especially in this area”, says Robert van de Kerkhof, Chief Commercial Officer of the Lenzing Group.

The project launched by Lenzing is being co-financed by the Austrian Development Agency, which brings together Albanian and Austrian experts as a means of improving forest management skills, enabling an exchange of know-how among vocational schools and revitalizing degenerated land in Albania.

“We very much appreciate Lenzing’s decision to be actively involved in Albania. The objective is to support local communities and work together to deal with the problem of deforestation in Albania as well as to promote an exchange of know-how between Austrian and Albanian schools“, states Simone Ungersböck, Head of the Office of the Austrian Development Agency (ADA) in Albania.

More than 3,000 trees planted

There is a great need to take action in the Ana e Malit region in North Albania. 50 percent of the official forest areas do not contain any forest vegetation. The results are erosion and annual floods, which in turn make life hard for the local population, who primary earn a living from agriculture. For this reason, 3,660 fruit, deciduous and conifer trees were planted in the western part of the Municipality of Shkodra at the foot of the Tarboshi Mountains and in close proximity to the Buna and Drni rivers. In addition, erosion protection measures were installed such as stone walls and double fences.

Cooperation with local communities and NGOs

Within the context of the project, the local community will be actively involved in the process in order to ensure a comprehensive transfer of knowledge. The pupils at the Forest School of Shkodra will actively take part in the entire process as a means of learning more about reforestation. Employees of Eco-Social Farm, a facility for people with disabilities located directly below the reforestation area, will take care of the irrigation of the seedlings. Furthermore, an interdisciplinary cooperation will be carried out with the Austrian school in Shkodra. The reforestation project will serve as the basis for the diploma thesis of the pupils there. In turn, this will contribute to sustainably raising the awareness of pupils and the general public with respect to current challenges in forest management.

The project underlines the commitment of the Lenzing Group to promoting sustainability and enables the company to establish best practice examples for the industry and at the same time to learn for future projects and similar CSR-related activities.

About the Lenzing Group

The Lenzing Group stands for ecologically responsible production of specialty fibers made from the renewable raw material wood. As an innovation leader, Lenzing is a partner of global textile and nonwoven manufacturers and drives many new technological developments.

The Lenzing Group’s high-quality fibers form the basis for a variety of textile applications ranging from elegant ladies clothing to versatile denims and high-performance sports clothing. Due to their consistent high quality, their biodegradability and compostability Lenzing fibers are also highly suitable for hygiene products and agricultural applications.

The business model of the Lenzing Group goes far beyond that of a traditional fiber producer. Together with its customers and partners, Lenzing develops innovative products along the value chain, creating added value for consumers. The Lenzing Group strives for the efficient utilization and processing of all raw materials and offers solutions to help redirect the textile sector towards a closed-loop economy.

Lenzing launches sustainable reforestation project in North Albania

Posted in: Mills 01/14/2020 - 03:41

LENZING, Austria, Jan. 14, 2020 (Press Release) -As part of its sustainability strategy “Naturally positive”, the Lenzing Group strives to ensure an intact environment and the protection of forests as an important part of the ecosystem. Against this backdrop, Lenzing initiated a project in Albania designed to promote sustainable forestry and improve local living conditions. As a best practice example, 20 hectares of degenerated land will be recultivated with forest and fruit trees in cooperation with the local population and various NGOs. Moreover, concepts for sustainable forestry will be developed with local schools.

Important measures benefit Albanian forests

Albania’s forest areas rank among the European regions with the most extensive room for improvement. New approaches to manage the forests are necessary in order to effectively cope with environmental problems and to fulfil the current needs of society with respect to the sustainable use of natural resources. Lenzing is supporting this process with this reforestation project. In this way, it is moving ahead with implementing the Sustainable Development Goals (SDGs) of the United Nations to which the company is committed.

“Lenzing has longstanding experience in responsible wood sourcing and extensive forestry expertise. This project shows that the Lenzingers passionately stand up for the viability of trees and forests and champion the interests of people above and beyond their daily business and fiber production. The idea for this project at this site came from Lenzing’s wood procurement team. Our forest experts have underlined the important role reforestation can play, especially in this area”, says Robert van de Kerkhof, Chief Commercial Officer of the Lenzing Group.

The project launched by Lenzing is being co-financed by the Austrian Development Agency, which brings together Albanian and Austrian experts as a means of improving forest management skills, enabling an exchange of know-how among vocational schools and revitalizing degenerated land in Albania.

“We very much appreciate Lenzing’s decision to be actively involved in Albania. The objective is to support local communities and work together to deal with the problem of deforestation in Albania as well as to promote an exchange of know-how between Austrian and Albanian schools“, states Simone Ungersböck, Head of the Office of the Austrian Development Agency (ADA) in Albania.

More than 3,000 trees planted

There is a great need to take action in the Ana e Malit region in North Albania. 50 percent of the official forest areas do not contain any forest vegetation. The results are erosion and annual floods, which in turn make life hard for the local population, who primary earn a living from agriculture. For this reason, 3,660 fruit, deciduous and conifer trees were planted in the western part of the Municipality of Shkodra at the foot of the Tarboshi Mountains and in close proximity to the Buna and Drni rivers. In addition, erosion protection measures were installed such as stone walls and double fences.

Cooperation with local communities and NGOs

Within the context of the project, the local community will be actively involved in the process in order to ensure a comprehensive transfer of knowledge. The pupils at the Forest School of Shkodra will actively take part in the entire process as a means of learning more about reforestation. Employees of Eco-Social Farm, a facility for people with disabilities located directly below the reforestation area, will take care of the irrigation of the seedlings. Furthermore, an interdisciplinary cooperation will be carried out with the Austrian school in Shkodra. The reforestation project will serve as the basis for the diploma thesis of the pupils there. In turn, this will contribute to sustainably raising the awareness of pupils and the general public with respect to current challenges in forest management.

The project underlines the commitment of the Lenzing Group to promoting sustainability and enables the company to establish best practice examples for the industry and at the same time to learn for future projects and similar CSR-related activities.

About the Lenzing Group

The Lenzing Group stands for ecologically responsible production of specialty fibers made from the renewable raw material wood. As an innovation leader, Lenzing is a partner of global textile and nonwoven manufacturers and drives many new technological developments.

The Lenzing Group’s high-quality fibers form the basis for a variety of textile applications ranging from elegant ladies clothing to versatile denims and high-performance sports clothing. Due to their consistent high quality, their biodegradability and compostability Lenzing fibers are also highly suitable for hygiene products and agricultural applications.

The business model of the Lenzing Group goes far beyond that of a traditional fiber producer. Together with its customers and partners, Lenzing develops innovative products along the value chain, creating added value for consumers. The Lenzing Group strives for the efficient utilization and processing of all raw materials and offers solutions to help redirect the textile sector towards a closed-loop economy.

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LENZING, Austria, Dec. 20, 2019 (Press Release) -In its “Hot Button Report”, the Canadian non-profit organization Canopy particularly highlights the innovative strength of the Lenzing Group, its active contribution to forest conservation and high level of transparency.

Lenzing – In the “Hot Button Report” issued by the Canadian non-profit organization Canopy, the Lenzing Group was once again rated number one in the world, thus confirming its role as the sustainability trailblazer in the textile industry. In this widely recognized ranking, Canopy grades the world’s 32 largest producers of wood-based fibers with respect to their success in achieving sustainable wood and pulp sourcing. Wood and the pulp derived from it are the most important raw materials underlying Lenzing’s sustainable production of cellulosic fibers.

“We are extremely proud of this top ranking. It underlines our leading position as a sustainability trailblazer in the manufacturing sector and in the fiber industry in particular. It gives our customers the confidence that we have created the right structures to prevent the sourcing and use of wood from ancient and endangered forests”, says Stefan Doboczky, CEO of the Lenzing Group. “Environmental protection and the prudent use of resources are an integral part of our responsibility to nature and society”, he adds.

Lenzing primarily convinced the non-profit organization Canopy this year thanks to its innovative strength used to promote the circular economy in the textile industry, its active contribution towards protecting the forests and preserving biodiversity as well as its high level of transparency in pulp sourcing.

Lenzing received a total of 26.5 points (up 3.5 points from the previous year) and was thus given the “light to mid green shirt” rating. This means that in using the wood-based cellulosic fibers produced by the Lenzing Group, there is only a very minimal danger that wood is derived from primeval forests and endangered forest areas. In the Wood and Pulp Policy published by Lenzing, the company confirms that it only sources wood and pulp from non-controversial sources.

About the Lenzing Group

The Lenzing Group stands for ecologically responsible production of specialty fibers made from the renewable raw material wood. As an innovation leader, Lenzing is a partner of global textile and nonwoven manufacturers and drives many new technological developments.

The Lenzing Group’s high-quality fibers form the basis for a variety of textile applications ranging from elegant ladies clothing to versatile denims and high-performance sports clothing. Due to their consistent high quality, their biodegradability and compostability Lenzing fibers are also highly suitable for hygiene products and agricultural applications.

The business model of the Lenzing Group goes far beyond that of a traditional fiber producer. Together with its customers and partners, Lenzing develops innovative products along the value chain, creating added value for consumers. The Lenzing Group strives for the efficient utilization and processing of all raw materials and offers solutions to help redirect the textile sector towards a closed-loop economy.

Key Facts & Figures Lenzing Group 2018

Revenue: EUR 2.18 bn

Nameplate capacity: 1,034,000 tons

Employees: 6,839

Lenzing leads for sustainable wood sourcing by Canadian environmental organization Canopy

Posted in: Mills 12/20/2019 - 09:58

LENZING, Austria, Dec. 20, 2019 (Press Release) -In its “Hot Button Report”, the Canadian non-profit organization Canopy particularly highlights the innovative strength of the Lenzing Group, its active contribution to forest conservation and high level of transparency.

Lenzing – In the “Hot Button Report” issued by the Canadian non-profit organization Canopy, the Lenzing Group was once again rated number one in the world, thus confirming its role as the sustainability trailblazer in the textile industry. In this widely recognized ranking, Canopy grades the world’s 32 largest producers of wood-based fibers with respect to their success in achieving sustainable wood and pulp sourcing. Wood and the pulp derived from it are the most important raw materials underlying Lenzing’s sustainable production of cellulosic fibers.

“We are extremely proud of this top ranking. It underlines our leading position as a sustainability trailblazer in the manufacturing sector and in the fiber industry in particular. It gives our customers the confidence that we have created the right structures to prevent the sourcing and use of wood from ancient and endangered forests”, says Stefan Doboczky, CEO of the Lenzing Group. “Environmental protection and the prudent use of resources are an integral part of our responsibility to nature and society”, he adds.

Lenzing primarily convinced the non-profit organization Canopy this year thanks to its innovative strength used to promote the circular economy in the textile industry, its active contribution towards protecting the forests and preserving biodiversity as well as its high level of transparency in pulp sourcing.

Lenzing received a total of 26.5 points (up 3.5 points from the previous year) and was thus given the “light to mid green shirt” rating. This means that in using the wood-based cellulosic fibers produced by the Lenzing Group, there is only a very minimal danger that wood is derived from primeval forests and endangered forest areas. In the Wood and Pulp Policy published by Lenzing, the company confirms that it only sources wood and pulp from non-controversial sources.

About the Lenzing Group

The Lenzing Group stands for ecologically responsible production of specialty fibers made from the renewable raw material wood. As an innovation leader, Lenzing is a partner of global textile and nonwoven manufacturers and drives many new technological developments.

The Lenzing Group’s high-quality fibers form the basis for a variety of textile applications ranging from elegant ladies clothing to versatile denims and high-performance sports clothing. Due to their consistent high quality, their biodegradability and compostability Lenzing fibers are also highly suitable for hygiene products and agricultural applications.

The business model of the Lenzing Group goes far beyond that of a traditional fiber producer. Together with its customers and partners, Lenzing develops innovative products along the value chain, creating added value for consumers. The Lenzing Group strives for the efficient utilization and processing of all raw materials and offers solutions to help redirect the textile sector towards a closed-loop economy.

Key Facts & Figures Lenzing Group 2018

Revenue: EUR 2.18 bn

Nameplate capacity: 1,034,000 tons

Employees: 6,839

Read more
  • LENZING, Austria, Dec. 5, 2019 (Press Release) -
  • Carbon reduction target confirmed by Science Based Targets initiative
  • Reduction of specific CO2 emissions by 50 percent until 2030
  • Vision 2050: Net-zero CO2 emissions by 2050
  • Lenzing awarded CSR-Gold status by EcoVadis

The Lenzing Group, a recognized leader in climate action, member of the CEO Climate Leaders Group of the World Economic Forum and a signatory to the United Nations Fashion Industry Charter for Climate Action, recently announced that it will drastically reduce its CO2 footprint. A first milestone is set for 2030, when Lenzing plans to cut down on CO2 emissions per ton of product by 50 percent compared to a 2017 baseline. For 2050 Lenzing has announced a vision towards net-zero CO2 emissions.

Scientific validation of Lenzing’s targets

Now a further milestone has been reached: The Science Based Targets initiative, the most recognized organization in the field of climate-relevant target setting, has scientifically validated Lenzing’s climate target. Targets adopted by companies to reduce greenhouse gas (GHG) emissions are considered “science-based” if they are in line with the level of decarbonization required to keep global temperature increase below 2 degrees Celsius compared to pre-industrial temperatures. Lenzing is the first wood-based fiber producer, which has set a science-based target.

“As an industry leader this is our responsibility towards future generations. It is part of our strategy to drive systemic change and to lead the industry with credibility”, says Stefan Doboczky, Chief Executive Officer of the Lenzing Group. „Using renewable raw material wood from sustainable forests and plantations that sequester carbon is a good thing. But we have to go further than that. At Lenzing, we look beyond fiber and wood and strive to develop and implement better and greener ways of production throughout the whole supply chain and also advocate this bold approach to our industry.”

Currently, 713 leading companies worldwide and 9 companies in Austria have committed to science-based targets. Only 305 of them have approved science-based targets.

EcoVadis awards Lenzing with CSR-Gold status

Another key in 2019 has been Lenzing’s award of the Gold CSR (Corporate Social Responsibility) status by EcoVadis, a leading international provider of business sustainability ratings. The EcoVadis Supplier Sustainability Rating ranks Lenzing among the top 1% of companies in its industry based on assessed CSR indicators in the areas environment, labour practices, ethics, and sustainable procurement

EcoVadis is a provider of business sustainability ratings, intelligence and collaborative performance improvement tools for global supply chains. Since 2007, EcoVadis has been compiling sustainability scorecards for nearly 55,000 companies in 198 industries and 155 countries.

About the Lenzing Group

The Lenzing Group stands for ecologically responsible production of specialty fibers made from the renewable raw material wood. As an innovation leader, Lenzing is a partner of global textile and nonwoven manufacturers and drives many new technological developments.

The Lenzing Group’s high-quality fibers form the basis for a variety of textile applications ranging from elegant ladies clothing to versatile denims and high-performance sports clothing. Due to their consistent high quality, their biodegradability and compostability Lenzing fibers are also highly suitable for hygiene products and agricultural applications.

The business model of the Lenzing Group goes far beyond that of a traditional fiber producer. Together with its customers and partners, Lenzing develops innovative products along the value chain, creating added value for consumers. The Lenzing Group strives for the efficient utilization and processing of all raw materials and offers solutions to help redirect the textile sector towards a closed-loop economy.

Lenzing announces vision of net-zero CO2 emissions as its sustainability target by 2050

Posted in: Mills 12/05/2019 - 03:58
  • LENZING, Austria, Dec. 5, 2019 (Press Release) -
  • Carbon reduction target confirmed by Science Based Targets initiative
  • Reduction of specific CO2 emissions by 50 percent until 2030
  • Vision 2050: Net-zero CO2 emissions by 2050
  • Lenzing awarded CSR-Gold status by EcoVadis

The Lenzing Group, a recognized leader in climate action, member of the CEO Climate Leaders Group of the World Economic Forum and a signatory to the United Nations Fashion Industry Charter for Climate Action, recently announced that it will drastically reduce its CO2 footprint. A first milestone is set for 2030, when Lenzing plans to cut down on CO2 emissions per ton of product by 50 percent compared to a 2017 baseline. For 2050 Lenzing has announced a vision towards net-zero CO2 emissions.

Scientific validation of Lenzing’s targets

Now a further milestone has been reached: The Science Based Targets initiative, the most recognized organization in the field of climate-relevant target setting, has scientifically validated Lenzing’s climate target. Targets adopted by companies to reduce greenhouse gas (GHG) emissions are considered “science-based” if they are in line with the level of decarbonization required to keep global temperature increase below 2 degrees Celsius compared to pre-industrial temperatures. Lenzing is the first wood-based fiber producer, which has set a science-based target.

“As an industry leader this is our responsibility towards future generations. It is part of our strategy to drive systemic change and to lead the industry with credibility”, says Stefan Doboczky, Chief Executive Officer of the Lenzing Group. „Using renewable raw material wood from sustainable forests and plantations that sequester carbon is a good thing. But we have to go further than that. At Lenzing, we look beyond fiber and wood and strive to develop and implement better and greener ways of production throughout the whole supply chain and also advocate this bold approach to our industry.”

Currently, 713 leading companies worldwide and 9 companies in Austria have committed to science-based targets. Only 305 of them have approved science-based targets.

EcoVadis awards Lenzing with CSR-Gold status

Another key in 2019 has been Lenzing’s award of the Gold CSR (Corporate Social Responsibility) status by EcoVadis, a leading international provider of business sustainability ratings. The EcoVadis Supplier Sustainability Rating ranks Lenzing among the top 1% of companies in its industry based on assessed CSR indicators in the areas environment, labour practices, ethics, and sustainable procurement

EcoVadis is a provider of business sustainability ratings, intelligence and collaborative performance improvement tools for global supply chains. Since 2007, EcoVadis has been compiling sustainability scorecards for nearly 55,000 companies in 198 industries and 155 countries.

About the Lenzing Group

The Lenzing Group stands for ecologically responsible production of specialty fibers made from the renewable raw material wood. As an innovation leader, Lenzing is a partner of global textile and nonwoven manufacturers and drives many new technological developments.

The Lenzing Group’s high-quality fibers form the basis for a variety of textile applications ranging from elegant ladies clothing to versatile denims and high-performance sports clothing. Due to their consistent high quality, their biodegradability and compostability Lenzing fibers are also highly suitable for hygiene products and agricultural applications.

The business model of the Lenzing Group goes far beyond that of a traditional fiber producer. Together with its customers and partners, Lenzing develops innovative products along the value chain, creating added value for consumers. The Lenzing Group strives for the efficient utilization and processing of all raw materials and offers solutions to help redirect the textile sector towards a closed-loop economy.

Read more

LENZING, Austria, Nov. 28, 2019 (Press Release) -Lenzing AG forges new paths in the financing of operative growth: As one of the first companies in the world, on November 27, 2019, the leading producer of wood based cellulose fibers successfully positioned a bonded loan bound to its sustainability performance.

For this type of loan, the interest is linked to Lenzing's performance in the area of sustainability and is annually reviewed and assessed by an independent sustainability agency. The MSCI agency, which undertakes the rating in Lenzing's case, recently awarded the company an A rating.

The innovative and sustainability-based financing of a bonded loan is a consistent step in the implementation of its own corporate strategy “sCore TEN”, with a focus on sustainability and environmental protection.

The initial EUR 200 mn bond was of such interest to investors from Europe and Asia that the decision was made to increase it to EUR 500 mn. Nearly 12 percent of this (USD 65 mn) was tendered in US dollars. The average interest rate of the loan is just under 1%, through which the Lenzing Group is financed less expensively than with previous bonded loans. The fluctuation margin of the interest rate of +/- 2.5 base points rises or falls depending on Lenzing's sustainability rating. In the event of an improved rating, the relevant interest savings will be donated on the part of Lenzing.

The total volume of the loan of EUR 500 mn will be available to the Lenzing Group in December 2019 and in January 2020, and is further distributed over tranches with terms of five, seven and ten years. In addition, registered bonds will be put into place with a term of 15 years. The resources will be used for general corporate financing, for early refinancing of a bond tranche from 2015 and for important sustainable future projects by the Lenzing Group.

Thomas Obendrauf, Chief Financial Officer of the Lenzing Group: “Our bonded loan connects attractive conditions to an innovative sustainability-oriented concept. For this we've used the favorable interest environment and secured long-term financing. Sustainability is an important success factor of our corporate strategy. We are firmly convinced that sustainability represents an elementary factor for the economic success of the Lenzing Group.”

The transaction was arranged and structured by BNP Paribas, the Landesbank Baden-Württemberg and UniCredit. Parts of the bonded loan were tendered via the innovative digital platform Debtvision. Considering the strong interest by domestic and foreign investors, the initial starting volume of EUR 200 mn was oversubscribed multiple times.

About the Lenzing Group

The Lenzing Group stands for ecologically responsible production of specialty fibers made from the renewable raw material wood. As an innovation leader, Lenzing is a partner of global textile and nonwoven manufacturers and drives many new technological developments

The Lenzing Group’s high-quality fibers form the basis for a variety of textile applications ranging from elegant ladies clothing to versatile denims and high-performance sports clothing. Due to their consistent high quality, their biodegradability and compostability Lenzing fibers are also highly suitable for hygiene products and agricultural applications.

The business model of the Lenzing Group goes far beyond that of a traditional fiber producer. Together with its customers and partners, Lenzing develops innovative products along the value chain, creating added value for consumers. The Lenzing Group strives for the efficient utilization and processing of all raw materials and offers solutions to help redirect the textile sector towards a closed-loop economy.

Lenzing successfully places Euro 500 million bonded loan

Posted in: Mills 11/28/2019 - 05:40

LENZING, Austria, Nov. 28, 2019 (Press Release) -Lenzing AG forges new paths in the financing of operative growth: As one of the first companies in the world, on November 27, 2019, the leading producer of wood based cellulose fibers successfully positioned a bonded loan bound to its sustainability performance.

For this type of loan, the interest is linked to Lenzing's performance in the area of sustainability and is annually reviewed and assessed by an independent sustainability agency. The MSCI agency, which undertakes the rating in Lenzing's case, recently awarded the company an A rating.

The innovative and sustainability-based financing of a bonded loan is a consistent step in the implementation of its own corporate strategy “sCore TEN”, with a focus on sustainability and environmental protection.

The initial EUR 200 mn bond was of such interest to investors from Europe and Asia that the decision was made to increase it to EUR 500 mn. Nearly 12 percent of this (USD 65 mn) was tendered in US dollars. The average interest rate of the loan is just under 1%, through which the Lenzing Group is financed less expensively than with previous bonded loans. The fluctuation margin of the interest rate of +/- 2.5 base points rises or falls depending on Lenzing's sustainability rating. In the event of an improved rating, the relevant interest savings will be donated on the part of Lenzing.

The total volume of the loan of EUR 500 mn will be available to the Lenzing Group in December 2019 and in January 2020, and is further distributed over tranches with terms of five, seven and ten years. In addition, registered bonds will be put into place with a term of 15 years. The resources will be used for general corporate financing, for early refinancing of a bond tranche from 2015 and for important sustainable future projects by the Lenzing Group.

Thomas Obendrauf, Chief Financial Officer of the Lenzing Group: “Our bonded loan connects attractive conditions to an innovative sustainability-oriented concept. For this we've used the favorable interest environment and secured long-term financing. Sustainability is an important success factor of our corporate strategy. We are firmly convinced that sustainability represents an elementary factor for the economic success of the Lenzing Group.”

The transaction was arranged and structured by BNP Paribas, the Landesbank Baden-Württemberg and UniCredit. Parts of the bonded loan were tendered via the innovative digital platform Debtvision. Considering the strong interest by domestic and foreign investors, the initial starting volume of EUR 200 mn was oversubscribed multiple times.

About the Lenzing Group

The Lenzing Group stands for ecologically responsible production of specialty fibers made from the renewable raw material wood. As an innovation leader, Lenzing is a partner of global textile and nonwoven manufacturers and drives many new technological developments

The Lenzing Group’s high-quality fibers form the basis for a variety of textile applications ranging from elegant ladies clothing to versatile denims and high-performance sports clothing. Due to their consistent high quality, their biodegradability and compostability Lenzing fibers are also highly suitable for hygiene products and agricultural applications.

The business model of the Lenzing Group goes far beyond that of a traditional fiber producer. Together with its customers and partners, Lenzing develops innovative products along the value chain, creating added value for consumers. The Lenzing Group strives for the efficient utilization and processing of all raw materials and offers solutions to help redirect the textile sector towards a closed-loop economy.

Read more

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