- Prachi Singh |
Lenzing’s managing board has decided to temporarily mothball the Lyocell expansion project in Mobile, Alabama (USA). The company said in a statement, rising likelihood of increasing trade tariffs, paired with the potential surge in construction costs due to the buoyant US labour market, have increased the risk profile of this project.
In view of this decision, Lenzing plans to divert all its effort to readjust the execution of its growth plan to meet strong market demand of its Lyocell fibers. This, the company added, includes an increased focus on the Lyocell expansion project in Prachinburi (Thailand). While Lenzing will reassess the decision on a regular basis, the company confirmed that no substantial additional Lyocell volumes, over and above the successful 25.000 tons expansion in Heiligenkreuz (Austria), will be added to the market in 2019 and 2020 by Lenzing.