for the year 2007
The Lenzing Group, world market leader in cellulose fibers, continues the expansion of production capacity at its second largest production site, PT. South Pacific Viscose in Purwakarta (Indonesia).
The Lenzing Group continues its success in the first two quarters into the third quarter of 2007 and is heading for a new annual record result.
The new sheet metal center of Lenzing Technik GmbH was inaugurated 19 October, with production at the high-tech plant having already started in August.
The Lenzing AG supervisory board gave the go-ahead for the expansion of the fiber production plant at Heiligenkreuz (Burgenland).
700 participants from more than 30 nations as well as 110 lecturers from 16 nations underline the impressive importance of the 46th Dornbirn MFC as a lead event.
Inauguration ceremonies were held at the new viscose fiber production plant in Nanjing on 8 September, after the successful conclusion of several months of trial operation.
Strong demand for Lenzing fibers continues – segment Plastics grows due to acquisitions – expansion to continue in second half.
Business developed successfully in all relevant segments, and especially in core segment Fibers, in the first half of 2007.The dynamic expansion of segments Fibers and Plastics continued, resulting in the best half-year result in the history of the company.
Lenzing as of today increased its share in the Indonesian subsidiary PT. South Pacific Viscose (SPV) from 41.98% to 85,79%. This increase is a logical step in the Group's strategy of expansion and globalization.
The regular shareholders' meeting of Lenzing AG approved a dividend of EUR 10.00 per share for business year 2006 (2005: EUR 8.00).
Thomas Fahnemann, chairman of the management board of Lenzing AG, was elected president of CIRFS on 31 May 2007 for a period of three years. CIRFS is the association of the European man-made fiber industry. Its members generate 90% of Europe's man-made fiber production (polyester, polyamide, acrylic, viscose and acetate fibers).
The Lenzing Group acquired the majority of the assets of US monofilament plastics producer Glassmaster through its subsidiary Lenzing Plastics GmbH. The company had been on offer after Chapter 11 proceedings.
Strong organic growth of the core business cellulose fibers, important acquisitions at Lenzing Plastics and the very good development of business operations characterized the first quarter of 2007.
The Lenzing Group confirms its preliminary figures for business year 2006 that were published on 12 March. According to these, Lenzing's core business cellulose fibers generated a new all-time record result due to its dynamic expansion.
The Lenzing Group will build a new viscose fiber production plant in India in cooperation with the Indian Modi Group.
The Lenzing Group acquires the assets of German plastics producer Pedex + Co. GmbH through its subsidiary Lenzing Plastics GmbH. Pedex is a leading supplier of special filaments for industry and trade in Germany.
The Lenzing Group started operation of its new viscose fiber plant at Nanjing (China). The new viscose fiber plant is the second production site for this fiber of the Lenzing Group in Asia and its sixth production site globally.
In the past business year 2006 the Lenzing Group achieved a new all time record result due to the dynamic expansion of its core business cellulose fibers.
The Lenzing Group expands into the production of carbon fibers, the construction material of the future. Lenzing Plastics GmbH, a subsidiary of Lenzing AG, and its German partner companies, SGL Carbon AG in Wiesbaden und Kelheim Fibres GmbH in Kelheim, concluded a joint venture, European Precursor GmbH, which is to produce primary materials for carbon fibers at the Kelheim site. The venture is pending the approval of the cartel offices.
The chairman of the Lenzing AG supervisory board, Karl Schmutzer, denies recurrent rumors concerning the sale of Lenzing AG to a strategic investor, in particular the Indian Birla Group.
Lenzing Plastics GmbH (LPG) will acquire 100% of the German plastics producer Hahl Group GmbH, pending the approval of the national cartel authorities in Germany and Austria. The transaction is expected to be completed by the end of the first quarter of 2007.