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Lenzing to build pulp wood plant in Brazil

The Lenzing Group, world market leader for wood-based cellulosic fibers, and Duratex, the largest producer of industrialised wood panels in the southern hemisphere, plan to build a 500,000 tonne dissolving wood pulp plant near Sao Paulo in Brazil. The start-up is planned for the first half of 2022. In the joint venture, Lenzing holds a 51 percent, Duratex a 49 percent stake.

The project will be financed through long-term debt. The corresponding financing contracts are expected tobe concluded at the end of the first quarter of 2020.Key milestone to structurally strengthen cost leadership position. The new dissolving wood pulp plant strengthens the Lenzing Group’s backward integration and cost position aswell as its specialty fiber growth in line with its sCore TEN corporate strategy. The single-line dissolving productionfacility of its kind. Dissolving wood pulp is a key raw material required for manufacturing Lenzing’s bio-based fibers. The joint venture will supply the entire volume of dissolving wood pulp to the Lenzing Group.“Wood-based cellulosic fibers offer an important contribution to enhance sustainability in the textile industry. Inline with its corporate strategy Core TEN, Lenzing is committed to drive organic growth in this market.

“The trust and support of the main shareholders of Lenzing and Duratex were of great importance forthis key project”, states Stefan Doboczky, CEO of the Lenzing Group. Strong focus on sustainability in planning the new production facility, particular importance was given to sustainability aspects. The joint venture secured FSC-certified plantations1 covering an area of over 44,000 hectares to provide the necessary biomass.

The plantations operate completely in accordance with the guidelines and high standards of the Lenzing Group for sourcing wood and pulp. The plant will operate among the highest productive and energy-efficient in the worldand will feed the 40 percent of excess bioelectricity generated on site as “green energy” into the public grid. With this project, Lenzing sets a milestone in its strategy to carbon neutrality.