Lenzing challenged by soaring demand

Cellulose fibre manufacturer Lenzing AG is experiencing problems in meeting demand for its products.The company, which is based in the Upper Austrian town of Lenzing and quoted on the Vienna Stock Exchange (WBAG), said today (Tues) it was “sold out for eight months”.”We are currently unable to provide our customers with enough fibre,” Lenzing – which has a global market share of 17 per cent – revealed. The firm explained recently especially demand from businesses in prospering economies like China, Turkey and India has been on the rise. Lenzing exports almost 89 per cent of its production.Lenzing said it will invest 1.5 billion Euros in its facilities until 2015 to increase its annual output from the current 710,000 tons to one million tons.The company, which is headed by Peter Untersperger since 2009, achieved a turnover of 1.29 billion Euros in the first three quarters of last year, up from 885 million Euros in the same time span of 2009. The firm has around 6,000 employees.One Lenzing stock was valued at 81 Euros at midday today.