Lenzing AG approves 300 million euro capital increase and restructuring

Lenzing AG has approved a capital increase of approximately 300 million euros during an extraordinary general meeting to fund its new strategic pivot, titled ‘Grow Nonwovens, Reset Textiles’. The company aims to raise a total of 600 million euros for this restructuring, with the remaining 300 million euros to be sourced through debt financing.

The strategy focuses on driving profitable volume growth in nonwoven fibers while reducing costs and non-profitable capital usage. To achieve this, Lenzing plans to close several production sites, including facilities in Burgenland (Heiligenkreuz), Grimsby in England, and three locations in Indonesia. These closures are expected to result in approximately 2,000 job losses worldwide.

Core shareholders, including the B&C Group, Suzano, and Oberbank, will cover 56% of the capital increase. The company anticipates short-term revenue declines, potential impairments of up to 150 million euros, and restructuring provisions of 40 million euros. Long-term financial goals include targeting an EBITDA margin between 20% and 25% and reducing the leverage ratio to below 2.5x.