Lenzing AG Refines Strategy to Boost Competitiveness Amid Challenging Market Conditions

Lenzing AG is sharpening its strategic focus on premium high-performance fibers such as TENCEL™, VEOCEL™, and LENZING™ ECOVERO™, aiming to enhance profitability and global leadership in sustainable regenerated cellulosic fibers. In response to volatile market conditions, including cost pressures and geopolitical uncertainties, the company plans significant cost-saving measures including reducing around 600 jobs at its Austrian headquarters by 2027, alongside operational efficiency programs and energy optimizations. Strategic investments exceeding EUR 100 million are planned for its Austrian Lenzing and Heiligenkreuz sites to drive innovation and strengthen site competitiveness. Lenzing is also reviewing its Indonesian production site as part of portfolio optimization. The company anticipates growing global demand for specialty fibers and targets balanced revenue distribution across textiles, nonwovens, and pulp segments. Despite challenges, Lenzing confirms its 2025 EBITDA guidance and targets an EBITDA of approximately EUR 550 million by 2027.