China : Inauguration of new viscose fiber plant in Nanjing

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.

Lenzing (Nanjing) Fibers Co., Ltd. is a joint venture with Nanjing Chemical Fibre Co, Ltd (NCFC), with Lenzing and NCFC holding 70% and 30% of the shares, respectively.

The new plant with an annual nominal capacity of currently 60,000 tons of viscose fibers was completed in less than two years and employs a staff of 540. Total investment was EUR 65 mill. Lenzing Technik, the systems engineering subsidiary of the Lenzing Group supplied the plant’s technology.

"Lenzing Nanjing is a central element of our strategy of expansion and globalization" said Thomas Fahnemann, chairman of the Lenzing management board, at a press conference held at the event.

China, with an above-average growth of its viscose fiber industry over the past five years, has become the largest producer, as well as the biggest consumer of viscose fibers.

"For us China is one of the key markets of the future. With our new new fiber production plant we want to give a clear signal to our customers in China: Our strategy is long-term. We will establish ourselves as a local producer. We believe in the sustainable success of the Chinese textile and nonwovens industry."

If Chinese demand for Lenzing fibers continues to grow at present rates, expansion is scheduled for the next years. The location allows tripling production capacity.
 
Sixth fiber plant of the Lenzing Group:
Lenzing Nanjing is the sixth cellulose fiber plant of the global Lenzing Group and the group’s second plant in Asia. The plant in Nanjing increases the group’s annual production capacity to 560,000 tons, expanding Lenzing’s leading global position in cellulose fibers for the textile and nonwovens industries. Lenzing up to now supplied the Chinese market through its trading company in Shanghai.

Standard viscose fibers were supplied by the the group’s Indonesian plant and specialty fibers were imported from Europe, mainly from the plant at Lenzing. Due to the strong demand for Lenzing fibers, the leading decision for a production plant in China was made in 2004. After an intense period evaluating locations and partners the ground-breaking ceremony was held in April 2005.

Nanjing was chosen for its superior infrastructure and for the fact that Lenzing’s partner, NCFC, was already in the process of building a viscose filament plant there. The joint utilization of energy supply and waste water treatment facilities enabled signifcant cost savings.

The immediate proximity of one of China’s biggest chemical complexes (among the neighbors is BASF China) was an additional advantage, as the region therefore offers sufficient regional industrial service providers.