Lenzing, the Austrian chemical specialist operating since 1890 and specialised in the production of man-made cellulosic fibers, will accelerate on its strategic realignment according to the priorities “Grow Nonwovens, Reset Textiles”. The strategy is designed to improve competitiveness, profitability and return on invested capital, positioning Lenzing for long-term growth in higher-value markets.
As part of its transformation and product portfolio optimization to be executed by the new leadership team under CEO Georg Kasperkovitz, Lenzing is consolidating its fiber production footprint alongside the ongoing sale process of the Indonesian viscose site, in Purwakarta. In addition, it plans to phase out production at its fiber plants in its historical plants in Heiligenkreuz, Austria by end of 2026 and in Grimsby, in the UK by end of 2027.
This transformation will enable Lenzing to strengthen its core manufacturing network, including the Lenzing site in Austria, while ensuring a stable and reliable supply for customers, while cutting less efficient and most cost-absorbing productive hubs.
In parallel, Lenzing is evaluating strategic options for the affected sites, including potential divestment or other value-preserving solutions. Should no viable outcome be achieved, Lenzing plans to implement a structured and orderly wind-down, with a strong focus on safety, supply reliability, and continuity for customers, as well as social and environmental responsibility.
The decision includes a major corporate restructuring dictated by the strategic choice to sharpen its focus on nonwoven applications while reshaping its textiles business. A strong innovation pipeline of proprietary next generation fiber technologies and platforms, including TreeToTextile, Lenzing Nonwoven Technology and advanced filament solutions are intended to accelerate growth in both business areas, while optimising its production footprint.
If on the one side, the group wants to accelerate its shift from fossil-based materials to sustainable cellulosic fiber solutions, Lenzing Group plans substantial organic growth of its nonwovens business by 2030 and increase its nonwovens production capacity at the Lenzing site in Austria.
On the other side, as the global textile fiber industry continues to quickly evolve, Lenzing aims to further sharpen its focus on differentiated, premium market segments and strategic customer partnerships, 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.
As the planned restructuring will bring to a cut of 2,100 jobs for the affected employees in Heiligenkreuz, an existing social plan applies. For affected employees in Grimsby, Lenzing will engage with employee representatives and relevant stakeholders regarding appropriate support and mitigation measures. In Indonesia, Lenzing plans to implement workforce-related efficiency measures in the third quarter of 2026, in line with local regulatory requirements, to optimize two-line operations.
“We are 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,” said CEO Georg Kasperkovitz.
“We are currently engaged in constructive discussions with employee representatives regarding the necessary measures under the existing social plans and applicable local frameworks,” he added.
Lenzing’s global workforce is expected to decrease significantly from approximately 8,100 employees at the end of 2025, until the end of 2027. The reduction will primarily affect employees at Heiligenkreuz (Austria), Grimsby (UK), and Purwakarta (Indonesia), as well as other previous reduction of 600 positions within the entire group.
The company’s strategic ambition is to return to revenue growth with an EBITDA uplift of approximately €150 million achieving an EBITDA margin of 20-25% and reducing leverage to below 2.5 times in the medium term. The ongoing erformance program and strategic measures, especially consistent pricing measures, start to bear fruit, reflected in the preliminary results of the second quarter 2026.
Revenue in Q2-2026 was at €652 million compared to €651 million in the year before (Q1-2026: €616 million). Earnings before interest, tax, depreciation and amortization (EBITDA) increased to €123 million, after €112 million in the second quarter of 2025 (Q1-2026: €116 million). EBITDA margin improved by 2% to 19% in Q2-2026. Net financial debt decreased to €1.36 billion compared to €1.44 billion in the previous year.