June 12, 2024 - Lenzing AG, a leading global supplier of cellulosic fibers, announced a strategic partnership with Suzano S.A., the world's largest market pulp producer.
Suzano has acquired a 15% stake in Lenzing from B&C Group, forming a long-term partnership with a combined ownership of 52.25%. This collaboration brings together Lenzing's expertise in cellulosic fibers with Suzano's experience in pulp production, aiming to strengthen Lenzing's position in the market.
"We see this partnership as a win-win-win situation," said Wolfgang Hofer, Chairman of B&C Group. "Suzano brings financial strength and a strong reputation to the table, while Lenzing offers Suzano access to new markets."
The partnership offers several benefits for both companies:
- Lenzing gains a financially strong partner: Suzano's investment provides Lenzing with additional resources to drive revenue growth, improve profitability, and expand its global reach.
- Suzano gains access to new markets: Lenzing's established network in the textile and non-wovens industry provides Suzano with an opportunity to enter new markets for its pulp products.
- Combined expertise strengthens market position: Suzano's knowledge of pulp production complements Lenzing's existing business model, creating a more competitive force in the market.
The agreement also ensures the long-term stability of Lenzing's operations in Austria. The company's headquarters, production facilities, and key R&D activities will remain in the country, and Lenzing will continue to be listed on the Vienna Stock Exchange.
"This partnership is a continuation of our strategy focused on investments that enlarge our addressable market," said Walter Schalka, CEO of Suzano. "Suzano, alongside B&C, will be an ideal partner for Lenzing as it seeks to strengthen its competitive position and global presence."
With Suzano as a strategic partner, Lenzing is well-positioned for continued growth and success in the cellulosic fiber industry.
