Lenzing opens world’s largest lyocell facility in Thailand

• March 04, 2022

The Austrian cellulosic fiber manufacturer has finished its lyocell expansion project in Thailand,  – which it claims is the world's largest of its kind, and started production on time.

The facility, according to the company, will help it better fulfill growing customer demand for Tencel branded lyocell fibers, as well as enhance its leadership position in the specialized fiber industry and move toward a carbon-free future.

Despite the hurdles posed by the Covid-19 outbreak, the construction of the factory in Prachinburi, about 150 kilometers northeast of Bangkok, began in the second half of 2019 and went mostly according to schedule, according to the group.

Cord Prinzhorn, CEO of Lenzing Group, said that they’re quite proud of this accomplishment. Their heartfelt gratitude goes out to the whole Lenzing team, particularly their Thai employees, as well as many external stakeholders who came together in the midst of a global epidemic to make this critical initiative a reality. Given the obstacles of the global pandemic, completing such a large project on time and on budget is an outstanding achievement.

Robert van de Kerkhof, member of the managing board, said that demand for their wood-based, biodegradable specialty fibers under the Tencel, Lenzing Ecovero, and Veocel brands is developing very well. They see significant development potential for their brands in Asia, based on sustainable innovation. Lenzing has hit a significant milestone in its expansion journey with the start of production at the lyocell plant in Thailand, supporting our ambitious goal of making the textile and nonwoven industries more sustainable."

Lenzing also stated that it will continue to grow its lyocell fiber manufacturing capacity as part of its sCore Ten strategies, which aims to generate 75% of its fiber income from environmentally responsible specialty fibers by 2024. It notes the Thailand site, has room for many production lines, with the first phase's investment already comprising general infrastructure that will help with future expansion.

However, the business claims that it will continue to explore ways to grow lyocell production in other parts of the world as well.

Prinzhorn adds that investments in Thailand and other Lenzing locations across the world assist them not only in their transformation to become a supplier of environmentally friendly specialty fibers but also in achieving their ambitious climate targets, thereby enhancing their company value.