The Lenzing Group announced the next steps of its strategic transformation aimed at positioning the company for long-term growth.
The Tencel producer said it is framing its strategic realignment under the priorities “Grow Nonwovens, Reset Textiles”—a plan that will sharpen its focus on nonwovens while reshaping its textiles business.
As part of the transformation, the company announced this week it is also reducing its workforce. Lenzing said these latest steps build upon measurable progress of its performance program as well as ongoing organizational development. Georg Kasperkovitz was named CEO in May.
The strategy aims to improve competitiveness, profitability and return on invested capital while positioning it for long-term growth in higher-value markets. The initiative takes place against an “increasingly challenging market environment for man-made cellulosic fibers and changed market dynamics,” Lenzing said, adding that the focus will be on a strong innovation pipeline of proprietary next-generation fiber technologies such as TreeToTextile and Lenzing Nonwoven Technology as well as advanced filament solutions.
Lenzing said the transformation includes optimizing its production footprint, implementing a comprehensive performance program and disciplined capital allocation to strengthen its financials.
With “Grow Nonwovens, Reset Textiles,” Kasperkovitz said Lenzing is taking “decisive steps to reposition the company for long-term success in a fundamentally changing market environment.”
“By combining a streamlined premium product portfolio, improved competitiveness and a strong proprietary innovation pipeline, we are creating the foundation for profitable growth and a more focused, resilient Lenzing,” the CEO explained. “At the same time, this transformation will strengthen our main production site in Lenzing, Austria, and support a sustainably profitable and competitive future for the site.”
As part of its transformation and product portfolio optimization, Lenzing said it is consolidating its fiber production footprint, which includes the ongoing sale process of the Indonesian viscose site, PT South Pacific Viscose. In addition, Lenzing said it plans to phase out production at its fiber plants in Heiligenkreuz, Austria, by the end of the year and in Grimsby, U.K., by the end of 2027.
Regarding its workforce, the company expects it to “decrease significantly” from about 8,100 employees (7,700 full-time equivalents) at the end of 2025 until the end of 2027. The reduction will primarily affect employees at the aforementioned sites in Austria, the U.K. and Indoesia as well as the previously announced reduction of 600 SG&A positions within the entire Group.
Kasperkovitz said the company is fully aware “that phasing out production at plants is a difficult but necessary decision that affects our employees. It is important to me that we act responsibly toward our employees also in this situation. We are currently engaged in constructive discussions with employee representatives regarding the necessary measures under the existing social plans and applicable local frameworks.”
Aside from the prioritization of nonwovens, the “reset textiles” effort centers on a sharper focus on differentiated, premium market segments as well as strategic customer partnerships. The goal is to better serve the needs of brands and retailers in Western and Asian markets.
“With advanced fiber technologies such as TreeToTextile, next-generation flame-retardant fibers and specialty solutions, Lenzing aims to reinforce its position as a trusted partner for high-value textile applications where innovation, performance and sustainability are key differentiators,” the company said.
