Lenzing AG Intensifies Pulp Cooperation with Sappi

Austria, Jul 23, 2012 - Lenzing AG, global market leader for man-made cellulose fibers, is intensifying its longstanding cooperation with the paper and pulp group Sappi. Both companies have concluded a multi-year pulp delivery contract at comparable terms and conditions with pricing linked to paper pulp as in the existing supply contract. The agreement is related to the construction of new dissolving pulp capacities by Sappi.

Sappi is the world’s largest manufacturer of dissolving pulp with an annual capacity of 800,000 tons at present growing to 1.3 million tons. Dissolving pulp is used in producing cellulose fibers, amongst other purposes. The raw material is wood mainly derived from certified eucalyptus plantations. Lenzing has already been sourcing high quality pulp for its non-integrated fiber production plants in Indonesia, China, Europe and the USA for several decades, including from the Sappi Group.

The Lenzing Group

The Lenzing Group is a world market leader with headquarters in Austria, production sites in all major markets as well as a worldwide network of sales and marketing offices. Lenzing supplies the global textile and nonwovens industry with high-quality man-made cellulose fibers and is the leading supplier in many business-to-business markets. The portfolio ranges from dissolving pulp, standard and specialty cellulose fibers to high-quality plastic polymer products and engineering services.

Lenzing quality and innovative strength set global standards for man-made cellulose fibers. With more than 70 years of experience in fiber production, the Lenzing Group is the only company worldwide combining the manufacturing of all three man-made cellulose fiber generations on a large industrial scale under one roof – from the classic viscose to modal and lyocell (TENCEL®) fibers. The success of the Lenzing Group is based on a unique combination of consistent customer orientation together with its leadership in innovation, technology and quality. Our successful specialization strategy and an outstanding cost position are the basis for our economic strength.
Lenzing is committed to the principle of sustainable management and very high environmental standards.
Lenzing's core business fibers is complemented by our activities in the business fields plastics and engineering.