Austrian fiber producer Lenzing has unveiled a sweeping nonwovens strategy titled "Grow Nonwovens, Reset Textiles." The plan repositions the company around specialized nonwoven applications while restructuring its broader textile fiber business. Lenzing will close fiber plants in Heiligenkreuz, Austria, by the end of 2026, and in Grimsby, United Kingdom, by the end of 2027.
The restructuring aims to strengthen Lenzing's flagship Austrian site and stabilize supply for its global customer base. Lenzing is reviewing strategic alternatives for the affected plants, including possible divestment. If no external buyer emerges, the company will begin a structured wind-down that prioritizes safety, environmental compliance, and worker welfare.
Strategic Realignment Toward Nonwovens
The nonwovens strategy responds to a shifting cellulosic fiber market. Lenzing wants to move away from standard commodity products, such as basic viscose fiber, and toward premium, differentiated segments. CEO Georg Kasperkovitz said the changes are necessary to secure a profitable, competitive future for the company's primary production site in Lenzing, Austria.
Lenzing plans to use its proprietary filament and specialty nonwoven technologies to drive growth. The company is committing €23 million to expand nonwovens capacity at its Austrian headquarters. It will also upgrade its Mobile, Alabama plant into a dedicated specialty facility, supporting organic nonwovens growth through 2030.
Plant Closures and Workforce Reductions
The transformation carries a broader cost-savings program worth roughly €120 million by the end of 2027. Lenzing expects this program, combined with an EBITDA uplift of about €150 million, to push medium-term EBITDA margins to 20-25%. These financial targets sit at the center of the company's revised textile strategy.
- Heiligenkreuz, Austria plant: closing by end of 2026
- Grimsby, UK plant: closing by end of 2027
- Workforce: declining from roughly 8,100 employees at end of 2025
- 600 administrative roles cut globally
Lenzing's global headcount will shrink from an estimated 8,100 employees at the end of 2025. Job cuts will hit Heiligenkreuz, Grimsby, and Purwakarta, Indonesia, alongside the administrative reductions. Management says talks with employee representatives on social plans are already underway.
Refinancing to Support the Transition
Lenzing plans a capital increase of up to €300 million, pending shareholder approval, alongside another €300 million in new financing agreements. The company will also extend existing debt maturities to 2030. This refinancing package is designed to give Lenzing the flexibility to execute its long-term nonwovens strategy while keeping leverage stable.
You can track how this nonwovens strategy unfolds, along with other fiber sector developments, through textilezon.com's textile news coverage.
Frequently Asked Questions
Why is Lenzing shifting its focus to nonwovens?
Lenzing is repositioning away from commodity viscose fiber and toward premium, differentiated nonwoven applications to build a more resilient, profitable business.
Which Lenzing plants are closing?
Lenzing will close its Heiligenkreuz, Austria plant by the end of 2026 and its Grimsby, UK plant by the end of 2027.
How many jobs will the restructuring affect?
Lenzing's workforce will decline from roughly 8,100 employees at the end of 2025, with cuts concentrated in Heiligenkreuz, Grimsby, Purwakarta, and 600 global administrative positions.
Conclusion
Lenzing's nonwovens strategy marks a decisive pivot away from commodity fiber production toward premium, specialty applications. The company is backing this shift with €23 million in nonwovens investment, a €120 million cost-savings program, and up to €600 million in fresh capital and financing. Buyers and suppliers across the textile supply chain should watch for a leaner, more specialized Lenzing by 2027. This restructuring sets a new benchmark for how commodity fiber producers can reposition around specialty growth.
