Lenzing to close Heiligenkreuz and Grimsby plants by end-2026/2027
Lyocell Fiber →Lenzing Group announced plans to phase out lyocell fiber production at its Heiligenkreuz, Austria facility by end-2026 and its Grimsby, UK plant by end-2027 as part of its 'Grow Nonwovens, Reset Textiles' restructuring. The closures will eliminate approximately 135,000 tonnes of European annual lyocell capacity and impact around 2,000 jobs globally. The structural exit is driven by high European energy and labor costs, leading Lenzing to consolidate production into scale-efficient core manufacturing hubs in Asia.
Qualify alternative Asian lyocell suppliers and re-map supply chains
Phasing out European production will alter regional availability, requiring buyers to hedge against supply concentration risk and transition sourcing toward Asian production hubs.