Lenzing Group to shut Grimsby lyocell plant by 2027, closing Austrian site in 2026

The Lenzing Group announced it will cease production at its Heiligenkreuz fiber plant in Austria by the end of 2026 and at its Grimsby lyocell facility in the United Kingdom by the end of 2027. The Grimsby plant, which employs 215 workers, has been operating for nearly three decades. The closures are part of Lenzing’s "Grow Nonwovens, Reset Textiles" restructuring strategy, which also includes the sale of the Indonesian viscose site PT South Pacific Viscose and a refinancing package of up to €300 million linked to a proposed €300 million capital increase. CEO Georg Kasperkovitz said the moves are intended to streamline the product portfolio, improve competitiveness and secure long‑term profitable growth.

The plan will involve exploring strategic options for the affected sites, including possible sales or other value‑preserving solutions, as Lenzing seeks to consolidate its fiber production footprint while maintaining its innovation pipeline.