EANS-Adhoc: Lenzing AG Lenzing to implement further cost optimization measures
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28.05.2014
Due to the very unsatisfactory development of prices on the global market for
viscose fibers, the Lenzing Group will be implementing additional cost reduction
measures. Today, the Management Board informed employees at the facilities in
Lenzing about the necessity of further measures to secure the long-term
competitiveness of the Lenzing Group. In relation to this, the Management Board
today announced a wide-ranging review of the Group strategy, the results of
which should be available by the end of 2014.
As noted in the report on Q1 2014, extensive measures were already successfully
implemented within the framework of the cost optimization program "excelLENZ
2.0". Thanks to this program, it was possible to prevent layoffs in Lenzing,
despite the staff reduction measures already carried out. Nevertheless, in light
of the current level of fiber prices, the savings of more than EUR 60 - 80 mn
for 2014 are still not enough to ensure the long-term profitability of cellulose
fibers production at the European facilities. The targeted cost reductions of up
to EUR 160 mn by 2016 must also be increased due to the market development.
CEO Peter Untersperger: "In light of the structural changes in competitive
conditions, our goal is to lead the Lenzing Group back to its previous
competitiveness. Further cost optimization is an inevitable part, but - within
the framework of strategic restructuring - we will also decide to which products
we can manufacture over the long run at which sites with the highest levels of
quality and at optimized costs. There can be no taboos. Everything must be
looked at."
Furthermore, a strategy group was established by the Management Board. This
group will look at the development of new specialty fibers for Lenzing AG, the
production and market positioning which will help to secure the unique selling
proposition and profitability, also of the Austrian sites.
Both the works council and political decision-makers will be informed about the
difficult market situation and their support has been requested in this process.
Further inquiry note:
Lenzing AG
Mag. Angelika Guldt
Tel.: +43 (0) 7672-701-2713
Fax: +43 (0) 7672-918-2713
mailto:a.guldt@lenzing.com
end of announcement euro adhoc
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issuer: Lenzing AG
A-A-4860 Lenzing
phone: +43 7672-701-0
FAX: +43 7672-96301
mail: a.guldt@lenzing.com
WWW: http://www.lenzing.com
sector: Chemicals
ISIN: AT0000644505
indexes: WBI, ATX, Prime Market
stockmarkets: free trade: Berlin, official market: Wien
language: English