Solid half year results
Despite a significantly more challenging market environment with historically low prices for standard viscose, the company recorded a slight increase in sales.
Sales increased by 1.2% in H1/2019 to €1.09 billion. This was primarily attributable to a further product mix optimization and higher prices for specialty fibers. EBIT fell by 17.9% to €105.6 million, resulting in a lower EBIT margin of 9.7% (H1/2018: 12%).
The construction of a state-of-the-art production plant for lyocell fibers in Prachinburi/Thailand, was approved in Q2/2019. The investment volume for the new plant, which has a capacity of 100,000 tons, totals approx. € 400 million. The conversion of production capacities from standard viscose to Lenzing Ecovero fibers in China was also completed during the reporting period.
The expansion and modernization of the production capacities for dissolving wood pulp at the Lenzing site was completed in H1/2019, and the company aims to strengthen its position as a sustainability front runner in the fiber industry, by investing over €100 million in energy-saving measures, in the continued conversion to renewable energies and in new technologies.