Lenzing has devised a business strategy for coming years. Its main priorities are strengthening the company’s core business, intensifying cooperation with customers along the value chain, increasing the share of specialty fibers to 50 per cent of total revenue by 2020, expanding its quality and technological leadership for man-made cellulose fibers and opening up new attractive business areas.

The objective is to safeguard and expand Lenzing’s leadership role in the dynamic growth market for man-made cellulose fibers. The new strategy reflects the objective of generating sustainable growth with specialty fibers such as Lenzing Modal or Tencel. The target is to increase Lenzing’s pulp position through backward integration by increasing the group’s own pulp production volumes and expanding strategic co-operations.

Lenzing aims at generating 50 per cent of total revenue from the business with eco-friendly specialty fibers such as Tencel, Lenzing Modal and viscose fiber specialties by the year 2020. Lenzing will further increase production capacities for Tencel depending on market requirements.

The reorganisation of the technical service units will be concluded in 2016. Compared to the previous year, Lenzing wants to continually increase EBITDA by 10 per cent annually and aims to increase the return on capital employed to more than 10 per cent by 2020. At the same time, the objective is to keep net financial debt at a level which is less than 2.5 times EBITDA.

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