Lenzing Group Announces $293 Million Expansion

The Business View – February 2017 / News You Can Use

Axis Plant to Become Largest TENCEL® Fiber Production Site in the World


2-2017_LenzingIn late December Lenzing Group approved an expansion of its production facility in Axis that, when complete in 2019, will increase its workforce with 163 new jobs. Company officials expect construction on the new plant to begin in 2017, and hiring for these new positions to take place in 2018.


“This expansion in TENCEL® fiber capacity represents a unique milestone in the history of the Axis facility and for the Lenzing Group. It underscores our commitment to all customers and consumers who want to make a positive impact as our TENCEL® fiber is recognized as world’s most sustainable botanic fiber for fashion and nonwoven products,” explained Lenzing Chief Commercial Officer Robert van de Kerkhof.


“This type of foreign direct investment and the addition of these high-wage jobs is yet another example of our manufacturing growth that continues to outpace the national rate. The commitment from Lenzing to locate the facility at the Mobile site demonstrates our area’s success in locating large economic development projects,” said Troy Wayman, vice president of economic development for the Mobile Area Chamber.


Lenzing aims to increase the share of specialty fibers as a percentage of revenue to 50 percent by 2020 and the fiber plant in Axis will have a production capacity of 90,000 tons per year, making it the largest TENCEL® fiber plant in the world. Company officials said the decision to build this plant in the U.S. was supported by the good infrastructure at the Mobile site and attractive energy costs.


“The expansion will more than double current TENCEL® production in Axis. We are very proud to have in Axis the first generation production site and now the most advanced, state-of-the-art facility in the same location,” said Kevin Allen, site manager.


Merceria Ludgood, president of the Mobile County Commission, and whose district is where Lenzing is located, said, “The county has experienced a 31 percent boost in manufacturing from 2010 to 2015. Our high schools and community colleges offer specialized advanced manufacturing training. This announcement means jobs will be available right here in our county, keeping our best and brightest right here at home.”


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