Austrian group Lenzing has announced the successful completion of a capacity expansion project initiated three years ago at its fibre production facility in Heiligenkreuz. The latter saw its production capacity increase from 25 to 60 thousand tons of Tencel per year.

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In order to achieve its goal, the group has invested 60 million euros at the Heiligenkreuz site over the last three years and the total number of employees has risen to more than 200. The announcement came just a few weeks after the launch of a new production facility in China, which makes around 140,000 tons of viscose every year.

Specialised in the production of fibres, Lenzing’s first half-year results reported a record sales turnover of 1.07 billion euros, up 31%. For fiscal year 2011, the company expects its revenue to increase to between 2.1 and 2.2 billion euros, and an EBITDA of 470-500 million euros.