Lenzing to Sell Heiligenkreuz Plant and Phase Out Production in Austria and UK

Lenzing Heiligenkreuz plant sale job cuts financing non‑wovens strategy

Lenzing AG announced that it will sell its fibre‑production site in Heiligenkreuz, Burgenland, Austria, and that fibre output at the plant will cease by the end of 2027. The company also plans to wind down production at its Grimsby, United Kingdom, facility by the end of 2027. About 285 workers at Heiligenkreuz are covered by an existing social plan, and the overall workforce of roughly 7,700 full‑time equivalents will be reduced by around 2,000 jobs by 2027 as part of a strategic realignment rather than a cost‑cutting program.

The transformation is financed by up to €600 million of fresh capital from main shareholders B&C Group, Suzano and Oberbank, a rights issue that could raise up to €300 million pending approval at an extraordinary general meeting slated for around 25 August 2026, and an extension of existing credit facilities to 2030. The Austrian state governor, Hans Peter Doskozil, pledged that the regional government will not abandon the site or its employees.

Lenzing’s strategic focus will shift toward non‑woven applications and a reset of its textile business, targeting an EBITDA margin of 20‑25 % and a debt‑to‑EBITDA ratio below 2.5 x, with an expected non‑cash asset write‑down of up to €150 million in 2026.

Entities: B&C Group · Georg Kasperkovitz · Grimsby · Hans Peter Doskozil · Heiligenkreuz · Lenzing AG · Suzano

Claims

What the coverage asserts, and how well corroborated each claim is across sources.

[● 7 SOURCES] 285 employees at Heiligenkreuz are covered by an existing social plan. (Company announcement)
[● 7 SOURCES] Shareholders B&C Group, Suzano and Oberbank will provide up to €600 million of fresh capital. (Company announcement)
[● 4 SOURCES] Fiber production at Heiligenkreuz and Grimsby will cease by the end of 2027. (Company announcement)
[● 7 SOURCES] Existing credit facilities have been extended to 2030. (Company announcement)
[● 7 SOURCES] Lenzing's global workforce will shrink by about 2,000 jobs by 2027, from roughly 7,700 full‑time equivalents. (Company announcement)
[● 4 SOURCES] Lenzing will sell its Heiligenkreuz site in Burgenland, Austria. (Company announcement)
[● 7 SOURCES] Lenzing intends a rights‑issue to raise up to €300 million, pending approval at an extraordinary general meeting around 25 August 2026. (Company announcement)
[● 4 SOURCES] CEO Georg Kasperkovitz said the measures are part of a strategic realignment, not a cost‑cutting program. (CEO interview)
[● 7 SOURCES] Fiber production at Grimsby, United Kingdom, will cease by the end of 2027. (Fiber production at Grimsby, United Kingdom, will cease by the end of 2027.)
[● 7 SOURCES] Lenzing plans to sell its Heiligenkreuz site in Burgenland, Austria. (Lenzing will sell its Heiligenkreuz site in Burgenland, Austria.)
[● 7 SOURCES] Fiber production at Heiligenkreuz will cease by the end of 2027. (Fiber production at Heiligenkreuz will cease by the end of 2027.)