Lenzing and Duratex are building a dissolving wood pulp plant in Brazil. The joint venture with Lenzing’s 51 per cent stake and Duratex a 49 per cent stake is financed through long-term debt. The corresponding financing contracts are expected to be concluded at the end of the first quarter of 2020.

The new dissolving wood pulp plant strengthens Lenzing’s backward integration and cost position as well as its specialty fiber growth. The single-line dissolving wood pulp plant with an annual nameplate capacity of 5,00,000 tons will be the largest and most competitive production facility of its kind. Dissolving wood pulp is a key raw material required for manufacturing Lenzing’s bio-based fibers. The joint venture will supply the entire volume of dissolving wood pulp to Lenzing. In planning the new production facility, particular importance was given to sustainability aspects. The joint venture secured certified plantations covering an area of over 44,000 hectares to provide the necessary biomass. These plantations operate completely in accordance with the guidelines and high standards of the Lenzing for sourcing wood and pulp. The plant will operate among the highest productive and energy-efficient in the world.

Lenzing is a leader for wood-based cellulosic fibers, and Duratex a producer of industrialised wood panels in the southern hemisphere.