Lenzing Inaugurates Nanjing Viscose Fiber Plant

Austria-based Lenzing AG recently
held inauguration ceremonies at its new viscose fiber production plant in Nanjing, China. Doing
business as Lenzing (Nanjing) Fibers Co. Ltd., the plant is a joint venture between Lenzing, which
owns 70 percent of the venture, and Nanjing Chemical Fibre Co. Ltd. (NCFC), which owns 30 percent.
The facility was constructed over a period of less than two years, and had been conducting trial
operations for several months prior to the inauguration.

With an annual production capacity of 60,000 tons of viscose fiber for textile and nonwovens
applications and the potential for tripling that capacity, and a workforce of 540 people, Lenzing
Nanjing — Lenzing’s sixth cellulose fiber plant globally and its second in Asia — represents a 65
million-euro investment and increases the company’s global capacity to 560,000 tons. The Lenzing
Group’s systems engineering subsidiary, Lenzing Technik, provided technology for the facility,
which the company reports is one of the most modern plants of its kind in Asia. The plant features
closed production cycles, a waste gas purification plant that is unique for China’s viscose fiber
sector, and energy management efficiencies that provide very low emissions and cost-effective
production, according to Lenzing.

“Lenzing Nanjing is a central element of our strategy of expansion and globalization,” said
Thomas Fahnemann, chairman of Lenzing’s Management Board. “For us, China is one of the key markets
of the future. With our 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.”

Lenzing notes that China is the largest producer and also the largest consumer of viscose
fibers. The company’s future plans call for facility expansion over the next few years if Chinese
demand for Lenzing fibers continues to increase at current rates.

September 19, 2007