In 2019, the swimmer group Lenzing has to make two broad decisions. The global concern that Upper Austria wants to make in deciding the construction of lyocell plant in Thailand at the beginning of the second half of the year, and at the end of the second half of the year, a decision will be taken. building heather mills will be built in Brazil
Lenzing's production company, Lenzing, will be for a number of big steps in 2019. Two plants, one in Thailand and one in Brazil, will be rebuilt in 2019. Above all, Brazil's project is standing. then went out. There the fiber optic, along with his partner in Brazil, Duratex, plans a $ 1 billion investment in a new waste mill with 450,000 tonnes.
Half of the money is contributing to Duratex, the wood panel manufacturer. The decision for the construction center still depends on agreement, technical design and funding. Lenzing believes that it is in a financial situation for the main project. The hard balance sheet and low debt ratio are said, Chief Executive Stefan Doboczky.
Lenzing wants to be independent from the market. With the mills drawing in Lenzing (Upper Austria) and Paskov (The Czech Republic), the company currently covers 55% of its own needs. The remainder must be purchased. With the new pulp mill in Brazil, the rate of self-sufficiency comes close to 75%.
The US market is "held"
On the other hand, Lenzing stopped for an extension in lyocell in the USA (Mobile). "We have to wait for the situation to change and now we're focusing on Thailand," said Doboczky. The hardest decision of the year, was the right one. Lyocell threads are used, amongst other things, for the manufacture of denims, warmth, sportswear textiles, workwear, underwear and bedclothes, as well as nonwovens for hygiene and expensive articles.
Asia is the most important market for Lenzing. 70% of the roots are made, China is the largest market. This is followed by Europe and the USA. The company, which owns more than 6,800 workers, wants to make more specific bones for the future as they get more from them than from viscose roots. Lenzing currently accounts for 45.5 per cent of its specialist fiber industry, and by 2020 this sector is expected to be 50 per cent. One strategy of the company is to make the user more visible who have particular cookies such as Tencel. Tencel thread is available in Levis, Löffler or Esprit products. The Billa supermarket series has recycled websites for fruit and vegetables that are made from Lenzing model threads.
Balancing and viewing page
“2018 per year was very tough, in a very challenging market environment, and in 2017 the stars were well-positioned,” said Lenzing boss. 2017 was the highest year for Lenzing. , a drop in sales of nearly 4 per cent, the higher costs for a slow socket, energy and staff as well as one-off effects caused the year to 148 million. t euros (before 282 million euros).
The output yield (EBIT) reduced by 36 per cent to 238 million euros. One-off effects have occurred in around EUR 35 million, for example, from damage to the investment raised in the US or from entering the other 30 per cent of the NCFC shared state partnership. at its Chinese subsidiary Lazing (Nanjing) Fibers Co., Ltd. (LNF).
Despite having profits from their profits, Lenzing plans to pay the shareholders 3 pounds and pay off certain debts of 2 euros. At the stock market, however, the paper decreased and it was down 3.9% at noon.
For 2019, the board expects to have 2018 results, but with more challenges (still). Geopolitical conditions are still challenging, with standard viscose rates expected to go further, while those for the tin yogurt are still high. Bookmaking buys 500,000 tons of cause zero every year, and the Group is very affected by high prices. However, the traditional viscose decline does not get a good return for the company. For 2019, extra books are expected to impact on the market, adding to the price pressures.
Leaving Britain from the EU (Brexit) seems to be well prepared. This company has a subsidiary company in the UK which makes special threads for exporting to Asia with 190 staff. Since the majority of threads came from England to Asia, direct effects from the export would not be expected, so the head of Lenzing.