The Lenzing Group intends to acquire the remaining 30% of its Chinese subsidiary Lenzing (Nanjing) Fibers (LNF) from its state-owned joint venture partner NCFC.

After closing of the transaction, the Lenzing Group will hold 100% of LNF. The underlying structured selling process was initiated by the joint venture partner in a state-controlled bidding process and today the Lenzing Group received the Share Purchase Agreement draft.

The closing of the transaction documents is expected for the end of October. The acquisition will have a negative impact on net profit of the Lenzing Group of around EUR 21 million for the fiscal year 2018.

“The purchase of the shares supports Lenzing’s strategic growth as a producer of specialty fibres from the renewable raw material wood in China and worldwide. It paves the way to setting up further production lines for specialty fibres. Lenzing wants to convert LNF into a specialty fibres hub over time,” the company reports.

The Lenzing Group is an international company that produces high-quality fibres and filaments from the renewable raw material wood with environmentally friendly and innovative technologies. These fibres form the basis for a wide range of textile and nonwoven applications and are also used in work and protective wear and in industrial applications.

With 80 years of experience, the Lenzing Group produces significant volumes of all three wood-based cellulose fibre generations.

www.lenzing.com