Lenzing Fiber and Pulp Operations PRESENTATION 5

Lenzing Fiber and Pulp
Operations
PRESENTATION
5th May, Vancouver
The Global market leader in Viscose
Stable Fibers (VSF)1 Business
Lenzing with 21% share of production2 Lenzing with 18% share of capacities3
Lenzing
Lenzing
18%
21%
Others
31%
Others
33%
Grasim4
4.60 mn tons
Thai
2%
9%
Rayon4
Tangshan
Thai Rayon4
Helon
Tangshan
3% Indo
9%
Bharat4
4%
Aoyang
6%
Fulida
Sateri
7%
9%
9%
5.49 mn tons
Grasim4
9%
3%
Helon
3%
Fulida
Indo
Aoyang Sateri
Bharat4 5%
7%
9%
4%
Source: CIRFS, FEB, Trade statistics, Company estimates
1) Viscose Stable Fibers (including Modal and Tencel), excluding Viscose filaments, acetate tow, cigarette filters (incl. filaments, acetate tow and cigarette filters:
6.0 mn tons in 2014 )
2) Production China: based on 84.6% utilization
3) Based on latest available company information from company websites and annual/interim reports
4) Direct or indirect non-controlling shareholdings by private Indian conglomerate Aditya Birla; marketing of viscose stables fibers under the “Birla”
2 umbrella brand
…a Niche of the Niche MMCF in the
Global fiber market
Wool
1.3%
(1,1 mn t)
Natural Fibers
& Natural
Polymers
Cotton
29.4%
(26,3 mn t)
89.4 mn tons
man-made
cellulose fibers
Synthetic fibers
62.6% (56,0 mn t)
Source: CIRFS, The Fiber Year, The Fiber Organon, Lenzing estimates
3
MMC fibers
6.7% (6,0 mn t)
VSF:
 Viscose/Rayon
 Modal
 TENCEL®/Lyocell
Others: Viscose filaments,
acetate tow, cigarette
filters
A profitable global player…
Sales volume by region1 –
strong footprint in Asia
Turnover
in mn EUR
RoW
Americas
2%
8%
EBITDA/EBIT
Europe
incl. Turkey
28%
in mn EUR
Asia
62%
Source: Company information
1) Fiber sales by volume in metric tons, 2014
4
…and real global production footprint
All numbers in kto
Europe1)
China
CAGR2) 5.8%
CAGR2) 6.2%
444 444
355 357 373
172
103 1053 105 172
103 103 107 110 110
140
1788 178
160 178
2011 2012 2013 2014 2015e
149 149 161 162 162
2011 2012 2013 2014 2015e
USA
CAGR2) 5.7%
40
40 100
50
50
50
2011 2012 2013 2014 2015e
50
Total capacity at
year end
Indonesia
CAGR2) 7.9%
2
Total pulp capacity
CAGR 6.4%
CAGR2 12.4%
533
407
556
260
349
60
117 240
289
289
290
296
557
260
887
992
995
Annual capacity in ‘000 metric tons
155
155
222
222
143
103
103
107
110
110
Dissolving
pulp capacity
663
Paskov
dissolving
pulp capacity
297
2011
629
659
660
2012 2013 2014
2015e
320
320
320
325
240
775
529
5
215
921
2011 2012 2013 2014 2015e
1) Includes Lenzing (A), Heiligenkreuz (A) and Grimsby (UK), does not include Kelheim capacity
2) CAGR 2011-2015, calculated on presented numbers
Lenzing Dissolving Wood Pulp
Operations of 556 kt
Lenzing / AT
Paskov / CZ
296,000 tons/year dissolving wood pulp
260,000 tons/year dissolving wood pulp
all capacities as at 31/12/2014; air-dried
 Both locations manufacture pulp in accordance with the magnesium bisulfite process
 The strategic objective is to have the Group’s own pulp production capacities supply two-
thirds of pulp requirements
 Fiber production at non-integrated sites is secured on the basis of long-term supply
contracts and additional purchases on the market
6
Dissolving Wood Pulp as niche of
World Pulp Demand
Pulp production capacity
188 million tonnes
•
Total Paper & Board 394 mt
35 mt mechanical, 153 mt chemical
(188mt) and 206 mt recycled
Chemical pulp production
153 million tonnes
•
thereof 67% integrated
Market pulp
50 million tonnes
•
26 millon tonnes
Bleached hardwood kraft pulp (BHKP)
24 millon tonnes
Bleached softwood kraft pulp (BSKP)
Dissolving pulp
Rayon Grades, Filament
4,3 million tonnes
Specialities
1,5 millon tonnes
Source PP: Fibria; Goldman Sachs Natural Resources Trip, January 2011;
Source DP: World Fibre Outlook up to 2025, Hawkins Wright, Nov 2012, page 6
7
•
•
Total dissolving pulp 5,8 mt
thereof 0.9 mt cotton linter pulp (CLP)
Dissolving Pulp Conversion products
Wood
Dissolving
Pulp
Cotton
Linters
Manufacturing process
Etherification
Nitration
Acetylation
Xanthation
Dissolution
Ethers
Nitrates
Acetates
Viscose
Lyocell
Binders
Glues
CMC
Detergents
Food
Pharmacy
Oil drilling mud
8
Explosives
Lacquers
Celluloid
Acetate tow
Rayon staple
Acetate filament
• Textile
Acetate mouldings
• Non-woven
Acetate films
Viscose filament
Rayon cord
Industrial yarn
Cellophane film
Sponge products
Sausage skin
Textile
Non-wovens
Others
Vulcan fibre
Parchment
Artificial leather
Laminating papers
Impregnation papers
Filter paper
Photo paper
Specialty papers
Grinding / moulding
powder
Renewable raw material wood
 Cellulose is nature‘s most
important construction material
and available in abundance
 Wood and the pulp derived from it
are the basis for für man-made
cellulose fibers
 Wood contains about 40% - 50%
cellulose
 Biodegradability is confirmed by
certification
9
Renewable raw material wood
 The raw material for Lenzing fibers is dissolving wood pulp from beech wood,
spruce, eucalyptus and several other types of wood
 Dissolving wood pulp has specific requirements compared to paper pulp
 2 % to 3 % of industrial pulp produced worldwide is used by the fiber industry
10
Highly efficient use
of the raw materials
The Lenzing site is fully integrated. Pulp production at the Lenzing site
achieves a wood utilization rate of over 50%.
11
The MMC /VSF fiber value chain:
from wood to the customer
Wood
Textiles
Pulp
Cellulosic
Fibers
Fabrics
End-use Products
Retail
End-use Products
Retail
Nonwovens
 Beech
 Eucalyptus
 Dissolving
wood pulp
 Spruce
 Viscose
 Woven
 Apparel
 Modal
 Knitted
 Home textiles
 Lyocell
 Tufted
 Carpets
 Industrial products
(e.g. flame
retardant)
 Nonwoven products
(e.g. wipes)
Parties Involved
 Forestries
 Pulp
producers
 MMC fiber
manufacturers




Spinners
Weavers
Knitters
Dyers
 Spunlacers
12
 Apparel
manufacturers
 Converter
 etc.
 Wholesalers
 Retailers
 Brands
Lenzing MMCF/VSF are ending up in
international brands
13
Apparel - Ladies’ wear – close to skin
 100%
TENCEL®
14
 Jacket: 35% TENCEL® /
18% Ramie / 47%
Organic cotton, Jumpsuit:
100% TENCEL®
 Asymmetric Hem Dress
 100% TENCEL®
 100% TENCEL®  65% TENCEL® /
35% Cotton
Home and Interiors
 100% TENCEL®
bedlinen
duvets
mattresses
15
 Lenzing Modal®
towels
bathrobes
….
Nonwovens
 TENCEL®
wash cloth
16
 TENCEL®
face masks
 TENCEL®
hygiene articles
New Business Development &
Technical
 TENCEL®
car seats
tires
injection moldings
…
17
 Lenzing Modal® COLOR
vegetable and fruit nets
eg. at REWE Austria
 TENCEL®
laces
soles
outer/inner layer
Thank you for your attention!
…with worldwide production sites…
Lenzing AG –
Austria (Fiber and pulp)
PT. South Pacific Viscose –
Indonesia (Viscose)
Grimsby –
Great Britain (TENCEL®)
Heiligenkreuz –
Austria (TENCEL®)
19
Biocel Paskov a.s. –
Czech Republic (Pulp)
Mobile –
USA (TENCEL®)
Lenzing (Nanjing) Fibers
Co. Ltd. – China (Viscose)