Lenzing to close famous UK and Austria lyocell plants

LENZING – The Austrian maker of Tencel fibre has set out a sweeping restructuring that will see the phase out of production at its lyocell plants in Heiligenkreuz, Austria, and Grimsby, UK, as the group pivots its fibre portfolio towards nonwoven applications and seeks fresh capital to shore up its balance sheet.

The recapitalisation is underpinned by the shareholder syndicate formed by Austria’s B&C Group and Brazil’s Suzano S.A., which together indirectly hold about 52.25% of Lenzing’s share capital and have irrevocably committed, subject to customary conditions, to take up their pro‑rata € 156.7 million stake in the rights offer.