February 10, 2010 — The Indonesian subsidiary of Lenzing AG, PT. South Pacific Viscose (SPV) has
started up first successful trials of its new fourth production line. Regular operation is expected
to commence in the course of the second quarter. The new line will produce viscose fibers for
textile applications and for the nonwovens industry. Production is intended for the domestic
Indonesian market, as well as for export.
A total investment of about USD 150 mill. makes the construction of the fourth SPV line the
biggest individual investment project of the Lenzing Group in recent years. Up to now a total of
more than USD 500 mill. have been invested into SPV. The project took 18 months to complete, with
key components supplied by Lenzing’s subsidiary Lenzing Technik. The additional 60,000 tons of
nominal annual capacity of this jumbo line boost total SPV capacity to 220,000 tons of viscose
fibers per year, maintaining SPV’s position as the leading Asian, and the world’s second-biggest
viscose fiber production site after Lenzing in Upper Austria with its annual capacity of about
255,000 tons. SPV’s sales are going to exceed USD 400 mill. over the next years. The overall
production capacity of the Lenzing Group with fiber productions sites in Austria, Indonesia, China,
Great Britain and the United States will for the present be increased to about 670.000 tons of
cellulose fibers.
Due to the strong demand for Lenzing fibers, a further debottlenecking program will be
started along with the start-up of regular production. This will, still in 2010, increase SPV’s
total annual capacity by another 18,000 tons to 238,000 tons.
Posted on February 17, 2010
Press Release Courtesy of Lenzing