Austrian Fibre Giant Lenzing to Cut 2,000 Jobs, Close Plants in Major Overhaul
Published on 07/29/2026 at 04:02 | Redaktion boerse-global.de
Austria’s Lenzing Group, a major producer of wood-based fibres, announced on 28 July 2026 a sweeping restructuring plan that will eliminate roughly 2,000 positions — more than a quarter of its global workforce. The company will also shut down or sell several manufacturing sites across Europe and Asia as it pivots toward nonwovens and away from textiles.
The cuts hit hardest at the company’s administrative operations, where 600 roles are slated for elimination by the end of 2027. Management has already taken a first step: 267 back-office positions have been axed, yielding savings of €25 million.
Two European Plants to Close
Production will cease at Lenzing’s site in Heiligenkreuz, Burgenland, by the end of 2026, affecting 285 employees. The state government of Burgenland has already pledged support for the location. In parallel, the company said it will immediately seek a buyer for the plant.
Across the English Channel, the Grimsby facility in the UK is scheduled to close by the end of 2027, putting 230 jobs at risk. Lenzing aims to sell both Heiligenkreuz and Grimsby rather than simply mothball them. The divestment process for its Indonesian plant is already underway.
Strategic Pivot and Financial Backing
Behind the cuts lies a fundamental shift in product strategy. Lenzing plans to raise the share of nonwovens in its revenue mix from 26% to 30%, while slashing textiles from 45% to 30%. The company is targeting an EBITDA margin of 20–25% in the medium term.
To fund the overhaul, Lenzing announced a capital increase of up to €300 million. An extraordinary general meeting has been called for 25 August 2026 to approve the move. The company’s two main shareholders — B&C Group, which owns 37.25%, and Suzano, holding 15% — are providing a refinancing package worth up to €600 million.
Still, the near-term outlook is bleak. Lenzing expects impairment charges of up to €150 million in 2026, plus restructuring costs of up to €40 million. Management blames persistently high energy prices, fierce competition from Asian producers, and the drag from US tariffs tied to ongoing trade conflicts.
Market Reaction and CEO Defence
Investors reacted with alarm. Lenzing’s share price plunged as much as 19% on 28 July, closing down 18% at around €20.
CEO Kasperkovitz acknowledged that the scale of job cuts came as a shock but defended the measures as essential for the company’s long-term survival. “This is a response to a market environment shaped by global trade conflicts and structural cost disadvantages in Europe,” he said.
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