Lenzing To Invest 120 Million Euros On European, Asian Site Expansions

Austria-based cellulosic fiber producer Lenzing Group has announced it will invest 120 million
euros in 2010 to expand production sites in Europe and Asia. Sites benefiting from the investment
include a pulp production plant in Lenzing, Austria; a fiber plant in Heiligenkreuz, Austria; and a
Tencel® plant in Grimsby, United Kingdom.

Capacity will be increased to 260,000 tons per year and an eco-friendly ozone bleaching
facility for pulp production will be added to the Lenzing plant. Tencel capacity at Heiligenkreuz
will be expanded from 10,000 tons to 60,000 tons per year; and the Grimsby site will be renovated
so it can manufacture a special Tencel fiber.

Construction underway at Lenzing subsidiary PT South Pacific Viscose in May 2009.

Photograph courtesy of Lenzing AG

In addition, a previous expansion at Indonesia-based subsidiary PT South Pacific Viscose
(SPV) is set to go live after two years under construction. A fourth production line will add
capacity for an additional 60,000 tons per year, taking total annual production at the facility to
220,000 tons. “Already today we expect that demand will exceed Indonesian production capacity,”
said Friedrich Weninger, head of fiber production and member of the Management Board. “We will
therefore begin with debottlenecking production right after start-up, with the aim to increase SPV
production capacity by another 18,000 tons to 238,000 tons per year.”

“We are expecting continuing strong demand for Lenzing fibers over the coming years,” said
Peter Untersperger, chairman of the Lenzing Management Board. “By these projects, we, as the world
market leader, intend to secure and enhance our lead in terms of quantity as well as quality. And
the message is clear: The Lenzing Group is going to shape fiber future jointly with its customers.”

January/February/March 2010