Lenzing plant closures and restructuring

In late July 2026 Lenzing AG announced a strategic realignment that includes selling its Heiligenkreuz fibre‑production site in Austria and winding down output at its Grimsby lyocell plant in the United Kingdom by the end of 2027. The company said the Austrian site would cease operations by the end of 2026, affecting about 285 workers, while the Grimsby facility—employing roughly 215 staff—would close a year later. Financing for the transformation involves up to €600 million from existing shareholders, a potential €300 million rights issue, and extended credit facilities to 2030. The plan is to shift focus toward non‑woven applications, reset the textile business, and improve profitability targets.

Two days later Lenzing clarified that the closures are part of its "Grow Nonwovens, Reset Textiles" restructuring strategy, which also foresees the sale of its Indonesian viscose site (PT South Pacific Viscose) and a refinancing package linked to a €300 million capital increase. CEO Georg Kasperkovitz framed the moves as necessary to consolidate the fibre production footprint, streamline the product portfolio, and secure long‑term growth.

Both announcements underscore Lenzing’s intent to reduce its workforce by around 2,000 jobs by 2027, target an EBITDA margin of 20‑25 %, and lower its debt‑to‑EBITDA ratio below 2.5 x.