Lenzing – In the first three quarters of 2020, the Lenzing Group successfully responded to the extremely difficult market environment of increased pressure on prices and volume due to the COVID-19 crisis by implementing a broad package of measures and remains fully on track in terms of its strategy.
The cooperation with partners along the value chains was intensified and Lenzing was agile and flexible in adjusting production volume to demand. In addition, Lenzing also intensified measures for structural earnings improvement to mitigate the effect of the pressure on fibre prices and demand for fibres, and reduced its operating costs significantly as a result.
- Significant improvement in the third quarter after COVID-19-related slump on the fibre market
- Measures for structural earnings improvement with positive impact
- Strategic investment projects remain on track
- Hygiene Austria joint venture: successful growth and continued focus on certified protective masks
- Lenzing wins the Austrian State Prize for Innovation with LENZING™ Web Technology
The immediate effects of the COVID-19 crisis increased the pressure on prices and volumes in the textile fibre segment, in particular in the second quarter of 2020. The increase in demand towards the end of the third quarter, primarily for wood-based specialty fibres such as TENCEL™ Modal and LENZING™ ECOVERO™, had a positive impact on the revenue and earnings development, but was still below the level of the previous year.
“Lenzing reacted quickly to the increased pressure on prices and volume caused by the COVID-19 crisis and consequently held its ground in this extremely difficult market environment due to a comprehensive set of measures. In the third quarter, we saw a broad recovery of the fibre market; in particular, demand for our sustainably produced specialty fibres increased significantly”, says Stefan Doboczky, CEO of the Lenzing Group.
“Strategically, we remain fully on track despite the pandemic, and the implementation of our key projects in Thailand and Brazil is progressing as planned,” says Doboczky.
For more information about Lenzing, visit www.lenzing.com.
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