Lenzing has announced a major strategic restructuring that will focus on expanding its nonwovens business while reducing its conventional textile fibre production. The company said the move is aimed at improving long-term profitability and building a stronger, more competitive business.

As part of its new "Grow Nonwovens, Reset Textiles" strategy, Lenzing will stop fibre production at its Heiligenkreuz, Austria, facility by the end of 2026 and at its Grimsby, UK, plant by the end of 2027. The company also confirmed that the sale of its Indonesian viscose business, PT South Pacific Viscose, is already in progress.

Lenzing said the new strategy will focus on a more specialized premium product portfolio, improved operational efficiency, and continued investment in its own technologies. The company believes these changes will create a stronger foundation for profitable growth while reinforcing its main production site in Lenzing, Austria.

The strategy also includes expanding Tencel Modal fibre production capacity in China and Austria. In addition, the company's pulp and biorefinery operations will remain an important part of its business. Capacity improvements at facilities in Brazil and Austria, along with operational and energy-efficiency upgrades, are expected to further strengthen this segment.