Lenzing approves 300 million euro capital increase

Upper Austrian fibre producer Lenzing has approved a capital increase of around 300 million euros to help finance its strategic realignment, ORF reported. The company plans to raise a total of 600 million euros for its “Grow Nonwovens, Reset Textiles” strategy, with a further 300 million euros expected from debt financing.

The strategy will focus more strongly on premium textile segments while expanding Lenzing’s pulp and biorefinery businesses.

As part of the realignment, Lenzing plans to end fibre production in Burgenland by the end of 2026. Its plant in England is scheduled to follow in 2027. The company expects the changes to result in the loss of around 2,000 jobs worldwide.

The capital increase is due to be implemented by February 25, 2027, at the latest. The board received support from the company’s major shareholders, including the B&C Group, Suzano and Oberbank.

Martin Seiter was also elected to Lenzing’s supervisory board at the extraordinary general meeting.