Lenzing AG, a global leader in regenerated cellulosic fibers, has announced a refined strategy to boost profitability and resilience amid persistent global market challenges.
The plan emphasizes high-value fibers, cost efficiency, and €100 million in new investments at the company’s Austrian sites.
Lenzing will focus on its premium brands — TENCEL™, VEOCEL™, and LENZING™ ECOVERO™ — while gradually phasing out lower-margin product segments. The company has also initiated a strategic review of its Indonesian plant, which may lead to a sale.
To improve efficiency, Lenzing will reduce around 600 positions in Austria by 2027, generating annual savings of more than €45 million. Energy optimization measures across all sites aim to cut consumption by 5% and further reduce costs.
“We’re building on our innovation strength while optimizing our structures and processes to strengthen competitiveness,” said CEO Rohit Aggarwal.
Over €100 million will be invested in the Lenzing and Heiligenkreuz sites by 2027 to modernize operations and drive fiber innovation.
Despite a volatile global market, Lenzing confirmed its 2025 EBITDA guidance and targets €550 million by 2027, positioning itself as a leaner, more agile leader in sustainable fiber production.
Headquartered in Austria, Lenzing AG is a global leader in the production of regenerated cellulosic fibers made from renewable wood sources. Through its brands TENCEL™, VEOCEL™, LENZING™, and ECOVERO™, the company supplies sustainable solutions for the textile and nonwovens industries worldwide. With operations across several continents, Lenzing combines innovation and circularity to drive the transition toward a more sustainable fiber economy.
