13 December 2010 08:54 [Source: ICIS news]
SINGAPORE (ICIS)--Lenzing is building a 60,000 tonne/year high-grade specialty fibre plant in Austria as part of a €285m ($375m) expansion programme to boost its overall production capacity to 1m tonnes by 2014, the Austria-based firm said on Monday.
The €130m plant, which will produce the firm’s Tencel fibre, will be built in Lenzing, Upper Austria, the company said in a statement.
Tencel is a specialty fibre used for textiles and nonwoven fabric.
Lenzing would also be building a fifth viscose production line at its Indonesian subsidiary South Pacific Viscose (SPV) in Purwakarta that would boost the site’s capacity to 325,000 tonnes/year by 2013, the company said.
“The additional quantities are expected to be mainly sold in the fast-growing Indonesian domestic market,” it said.
The firm’s investment programme would include the expansion of its US-based Tencel production site in Mobile, Alabama, it said.
A total investment of almost $30m was expected to increase the site’s capacity to around 50,000 tonnes/year, the company added.
Lenzing would also be expanding its viscose fibres capacity at a second production line being built in Nanjing, China, to 160,000 tonnes, from a previously scheduled 140,000 tonnes, the company said.
The additional capacity, an investment of around $18m, was expected to be available from 2012, the company added.
The production capacity for specialty nonwoven fibres would also be expanded at the Nanjing site, with an existing line being upgraded at a total investment of around €17m, Lenzing said.
The project was scheduled to be completed by the middle of 2012, it added.
Lenzing’s expansion projects, in addition to those already in progress, are expected to increase the group’s annual production capacity of nearly 700,000 tonnes by around 25%, according to the company.
($1 = €0.76)
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