Cellulosic fibres specialist Lenzing has reported a strong increase in revenues and earnings in 2021, boosted by strong demand and increasing fibre prices. Despite substantial increases in the costs of energy, raw materials and logistics, the Austrian-headquartered company’s turnover climbed by 34.4 percent to €2.91 bn and net profit was €127.7 mn compared to a loss of –€10.6 mn for 2020.
Speciality fibres – Tencel, Ecovero and Veocel – accounted for over 72 percent of fibre sales. “With the start of production at our state-of-the-art lyocell plant in Thailand a week ago, we are further strengthening our leading position as a supplier of eco-friendly speciality fibres,” said CEO Cord Prinzhorn. “The competion of our pulp mill in Brazil is also imminent and we are very proud to have been able to realise both projects on time and within budget.”
Lenzing’s capital spending during 2021 amounted to €844.3 mn.
In 2019, the company became the first fibre manufacturer to set a target to reduce its carbon emissions by 50 percent by 2030 and to become climate neutral by 2050. These targets have been recognised by the Science Based Targets Initiative.
The partnership with Swedish pulp producer Södra marks a further milestone in Lenzing’s efforts to realise climate and sustainability goals and an expansion of capacities for pulp recovery from waste textiles is planned, with the goal of recycling 25,000 tonnes of used textiles per year by 2025.
During 2021, the first Tencel lyocell fibres made from wood and upcycled orange-based fibre pulp were introduced, as well as the first Veocel carbon neutral fibres for the global nonwovens market.
