The Austrian fibre manufacturer is restructuring its production network, extending operations at its Heiligenkreuz facility until March 2027 while seeking investors and strengthening its financial position.
Austrian speciality fibre producer Lenzing Group is seeking buyers for its Heiligenkreuz lyocell manufacturing facility, with initial offers expected in November 2026, as the company advances its restructuring programme.
The proposed divestment follows the completion of a €300 million rights issue in October, intended to strengthen Lenzing’s balance sheet and support its Grow Nonwovens, Reset Textiles strategy.
Lyocell Production Extended Until March 2027
Located in Austria’s Burgenland region, the Heiligenkreuz facility has three production lines and annual lyocell production exceeding 80,000 tonnes, according to Lenzing’s published site profile.
The plant, operating since 1997, employs approximately 285 workers.
Lenzing originally planned to discontinue production by December 2026 but has extended operations until the end of March 2027.
The additional period will allow production transfers to other manufacturing sites, inventory management and uninterrupted customer deliveries.
Approximately 30 potential investors have expressed interest in acquiring the facility. However, no binding transaction has been announced.
Capital Increase Strengthens Financial Position
Lenzing completed its fully underwritten rights offering in October, issuing 34.76 million new shares at €8.65 each.
Existing shareholders subscribed for approximately 99% of the offering, demonstrating substantial participation in the financing.
Following the capital increase, Lenzing’s total voting rights increased to 73.37 million, while share capital reached €76.20 million.
The shareholder consortium comprising Austria’s B&C Group and Brazil’s Suzano retains approximately 52.25% ownership.
Fibre Production Network Under Restructuring
Lenzing’s strategic transformation prioritises expanding its nonwovens business while consolidating textile fibre production at core manufacturing sites.
The programme also includes the planned phase-out of its Grimsby facility in the United Kingdom by the end of 2027.
For textile manufacturers, the restructuring raises questions about future lyocell sourcing, production geography and supply-chain continuity.
The next milestones are initial acquisition offers in November and Lenzing’s third-quarter financial results on November 5, which should provide further indications of its financial recovery and restructuring progress.
