Lenzing AG Adjusts Strategy Amidst Challenging Market Conditions

Lenzing AG, renowned for its regenerated cellulosic fibers, is refining its strategy to bolster global competitiveness in challenging markets. The company will emphasize high-margin segments and high-performance fibers, while investing over EUR 100 million in Austrian sites to ensure long-term competitiveness.

Key measures include a focus on premium products like TENCEL™ and LENZING™ ECOVERO™, strategic site reviews, and cost-saving initiatives. Lenzing plans to reduce its Austrian workforce by approximately 300 employees by 2025, with a view to saving EUR 25 million annually from 2026.

The market strategy realigns Lenzing toward high-value end markets. By pivoting away from lower-margin segments, the company aims to leverage growth opportunities in sectors like hygiene and packaging.

Lenzing is confident in its strategic direction, maintaining EBITDA guidance for 2025. The refined strategy seeks to secure growth, despite volatile market conditions.