中文Lenzing has confirmed plans to phase out production at its Grimsby site by the end of 2027, a decision that puts more than 200 jobs at risk and forms part of a wider restructuring aimed at delivering €120 million in savings against 2025 figures.
The Austria-headquartered group, which turns over €2.6 billion (£2.2 billion) and specialises in cellulose and fibres for textiles and nonwovens, set out the plan as part of what it describes as an acceleration of its strategic transformation under the banner “Grow Nonwovens, Reset Textiles.”
What is closing and when
The restructuring involves optimising the group’s global fibre production network by “strengthening selected core sites, including Lenzing in Austria, while phasing out production in Heiligenkreuz by the end of 2026 and Grimsby by the end of 2027.” Both Heiligenkreuz, also in Austria, and Grimsby are fibre plants. Separately, Lenzing is consolidating its footprint through an ongoing sale process for its Indonesian viscose operation, PT South Pacific Viscose.
The BBC has reported that 215 staff work at Grimsby, a site Lenzing has operated since 2004 and which manufactures Tencel, the brand name for the company’s lyocell fibres. Unite represents workers at the plant, and regional officer Mick Simpson described the move as “devastating”, saying the union would scrutinise the plans and demand “that all options are properly considered.”
Lenzing has said it is evaluating strategic options for the affected sites, “including potential divestment or other value-preserving solutions.” Should no viable outcome emerge, the company plans “a structured and orderly wind-down, with a strong focus on safety, supply reliability, and continuity for customers, as well as social and environmental responsibility.”
The financial architecture
The €120 million savings target includes €45 million of previously announced personnel cost reductions, concentrated in administrative functions and corresponding to a reduction of roughly 600 employees. Lenzing expects its global workforce, around 8,100 at the end of 2025, to decrease significantly through to the end of 2027.
The stated ambition is a return to revenue growth with an EBITDA uplift of approximately €150 million, an EBITDA margin of 20 to 25%, and leverage reduced below 2.5 times in the medium term. The transformation is backed by primary shareholders B&C Group and Suzano, along with Oberbank, and accompanied by plans for a comprehensive refinancing agreement with core lenders.
CEO Georg Kasperkovitz framed the strategy as a repositioning rather than a retreat. “With ‘Grow Nonwovens, Reset Textiles’, Lenzing is taking decisive steps to reposition the company for long-term success in a fundamentally changing market environment,” he said. “By combining a streamlined premium product portfolio, improved competitiveness and a strong proprietary innovation pipeline, we are creating the foundation for profitable growth and a more focused, resilient Lenzing.”
On the human cost, Kasperkovitz was direct. “We are fully aware that phasing out production at plants is a difficult but necessary decision that affects our employees,” he said. “It is important to me that we act responsibly toward our employees also in this situation. We are currently engaged in constructive discussions with employee representatives regarding the necessary measures under the existing social plans and applicable local frameworks.”
Why the print and packaging sector should be watching
Lenzing is not a printing company, and Tencel is not a print substrate. The relevance runs through the cellulose supply chain that both industries share.
Wood pulp is the common input behind paper, board, and man-made cellulosic fibres. When a major cellulosic producer restructures capacity across multiple European sites, it changes pulp demand patterns, and pulp pricing has been one of the most volatile cost inputs facing paper and packaging buyers over the past several years. Capacity coming out of the fibre side does not translate directly into cheaper paper, but it does shift the balance of a market that print buyers depend on.
The strategic pattern is also worth noting on its own terms. “Grow Nonwovens, Reset Textiles” is a decision to retreat from a commoditised, price-competitive segment and concentrate resources on a higher-value one with better structural growth. Nonwovens serve hygiene, medical and wipes markets with more defensible margins than volume textile fibre, where Asian producers compete aggressively on cost.
That is the same calculation facing large parts of the European print and packaging manufacturing base: whether to defend share in segments where cost structure is uncompetitive, or to concentrate capital on applications where technical capability and proximity to customers still command a premium. Lenzing has chosen the second, and is absorbing the closure of a plant it has run for over two decades to fund it.
The human arithmetic
None of the strategic logic makes the Grimsby outcome easier for the 215 people who work there. Lenzing has committed to engaging with employee representatives and relevant stakeholders on support and mitigation measures, and the possibility of divestment remains formally open.
Whether a buyer emerges for a site in a segment its current owner has decided to exit is the question that will determine whether this is a closure or a transfer. On the evidence of similar European restructurings, the odds are not favourable.
Source: Printweek, Richard Stuart-Turner, “Lenzing to close Grimsby site”, 3 August 2026.
