Lenzing recently invited over 330 guests to a special celebratory event at Schloss-Fuschl near Salzburg in Austria, to mark both its 65th anniversary and the production of five million tons of fibres at its Lenzing plant.

Last year, the group's production totalled 366,000 tons, and 73% of sales of €626 million were generated by the fibre operations.

Expansion

Lenzing is also currently carrying out its most ambitious expansion plans in Europe in its history, with capacity for both viscose and lyocell being significantly increased. Viscose capacity at the Lenzing plant in Austria will be upped by 20,000 tons at a cost of €90,000, while at the Heligenkreuz plant, also in Austria, a €35 million investment will increase lyocell production capacity by 40,000 tons.

The Lenzing plant is the world's largest viscose fibre plant, accounting for 12% of global production, and it is also the largest with integrated pulp production. Dr Franz Raninger, a member of Lenzing's executive board, said that this was significant, in allowing the company complete control over its manufacturing process from the wood to the fibre.

Lenzing has grown its global viscose market share from 9% to 21% over the last decade. There are around 40 different producers in China representing 25% of this market while India's Birla Group has a 22% share. Other significant players are Formosa Chemicals and Fibre Corporation (FCFC) of Taiwan with 9% and Acordis with 7%.

Restructuring

The restructuring of this industry over the past decade or so is illustrated by Lenzing's own growth, Birla's climb from 13% to a 22% share, Chinese manufacturers also growing and both East Europe (28% down to 2%) and Japan (9% down to 2%) curtailing much output.

The restructuring in Europe has been even more pronounced. There were 16 manufacturers in 1980 and now there are just five. Acordis was the leader in 1980 with 31%, followed by Sateri with 27% and Lenzing with 15%.

Today, Lenzing is by far the biggest player in Europe, with a 48% share followed by Acordis with 17% and Säteri with 15%, with Svenska and Sniace the other two producers remaining.

The acceleration of Lenzing's production is also illustrated by the time-frame of its five million tons production - the first million taking 29 years, the second 11 years, the third ten years, the fourth 7.5 years and the latest 6.7 years.

Specialities

There has also been a repositioning in respect of Lenzing's target markets, with speciality fibres, which accounted for 20%, or 2,000 tons in 1992, accounting for almost 50%, or 70,000 tons in 2002.

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This is in volume terms, but the actual net contribution of specialities is "significantly more than 50%", according to director of sales and marketing Friederich Weninger.

"Specialities need special patience, however," he said, "and take time to get into the minds of the consumer."

Lenzing's marketing of its specialities has focused on four main areas:

• Positioning and differentiation
• Branding and promotion
• Development and innovation
• Supply chain management

Its ProViscose brand, for instance, is positioned as the strongest viscose available, Modal as the softest, and Lyocell as the "feel good" fibre.

Branding and promotion activities go all the way to retail and Lenzing works closely with spinners, weavers, knitters and nonwovens manufacturers on new product development. It also carries out technical tests on over 1,000 garments a year on behalf of its customers in its well-equipped labs and pilot plants.

Nonwovens

UK consultant DRA recently published four reports focusing separately on polyester, polypropylene, nylon and viscose rayon which analyse in detail the consumption of these man-mades in both technical textile and nonwoven end-uses both overall and in their polymer, fibre, yarn and fabric forms, and make forecasts to 2010, by volume and value.

The viscose report looks at 30 different viscose technical products and forecasts that the fibre's usage will grow significantly faster than all the other man-mades, although from a much lower volume base, due largely to its suitability in rapidly growing markets for nonwoven wipes and other hydrophilic products. Nonwovens account for 9 out of the 10 fastest growing products containing viscose.

In 2010 Western Europe will remain the largest consumer of viscose in technical textiles and nonwovens, whilst North East Asia is forecast to become the second largest consumer, overtaking North America. Market growth is expected to be the strongest in South Asia, albeit from a low initial volume.

Nonwovens Report International - August 2003