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26.09.2018 – 19:41

Lenzing AG

EANS-Adhoc: Lenzing
Lenzing temporarily mothballs lyocell expansion project in Mobile, Alabama

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  Disclosed inside information pursuant to article 17 Market Abuse Regulation
  (MAR) transmitted by euro adhoc with the aim of a Europe-wide distribution.
  The issuer is responsible for the content of this announcement.
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Strategic Management Decisions
26.09.2018

Highlights -

* Trade tensions among major economies elevate project risk
* Buoyant US labor market increases threat of substantial project cost overrun
* Lenzing will reassess this decision on an ongoing basis
* Intensified focus on lyocell expansion project in Prachinburi (Thailand)

Lenzing - Lenzing's Managing Board concluded today to temporarily mothball the
lyocell expansion project in Mobile, Alabama (USA). The rising likelihood of
increasing trade tariffs, paired with the potential surge in construction costs
due to the buoyant US labor market, have increased the risk profile of this
project. Consequently, Lenzing will put all its effort to readjust the execution
of its growth plan to meet strong market demand of its lyocell fibers. This
includes an increased focus on the lyocell expansion project in Prachinburi
(Thailand). Lenzing will reassess this decision on a regular basis but no
substantial additional lyocell volumes, over and above the successful 25.000
tons expansion in Heiligenkreuz (Austria), will be added to the market in 2019
and 2020 by Lenzing.

Lenzing continues to be fully committed to implement its sCore TEN strategy and
remains on track for the specialty expansions such as TENCEL(TM) Luxe filaments
and LENZING(TM) ECOVERO(TM) viscose fibers, however this decision will slow down
the implementation of the lyocell specialty staple fiber growth.

Photo download:
https://mediadb.lenzing.com/pinaccess/showpin.do?pinCode=uXZtMUGWhBwL [https://
mediadb.lenzing.com/pinaccess/showpin.do?pinCode=uXZtMUGWhBwL]
PIN: uXZtMUGWhBwL




Further inquiry note:
Lenzing AG
Mag. Waltraud Kaserer
Vice President Corporate Communications & Investor Relations
Tel.: +43 (0) 7672 701-2713
mailto: w.kaserer@lenzing.com

end of announcement                         euro adhoc
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issuer:       Lenzing AG
                
              A-A-4860 Lenzing
phone:        +43 7672-701-0
FAX:          +43 7672-96301
mail:      office@lenzing.com
WWW:       http://www.lenzing.com
ISIN:         AT0000644505
indexes:      ATX, WBI
stockmarkets: Wien
language:     English
 

Original content of: Lenzing AG, transmitted by news aktuell

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