Lenzing To Close Austria And UK Plants, Cut Workforce By 25% Under Restructuring Plan
Austria-based fibre manufacturer Lenzing Group has announced a major restructuring programme that includes the closure of two production facilities, a workforce reduction of around 25 percent and fresh financing measures aimed at strengthening its financial position.
The company said it plans to achieve cost savings of at least €120 million by the end of 2026 as part of its ongoing transformation strategy.
Under the restructuring plan, Lenzing will close its production sites in Grimsby, United Kingdom, and Heiligenkreuz, Austria, in the coming months. The decision marks one of the first major strategic initiatives under Chief Executive Officer Georg Kasperkovitz, who assumed leadership of the company in June 2026.
In addition to the plant closures, Lenzing will reduce its global workforce by approximately 25 percent over the next 18 months, bringing its employee count to below 6,000.
To support its restructuring efforts and strengthen liquidity, the company has also announced plans to raise up to €300 million through a capital increase backed by its major shareholders. This will be the second capital increase undertaken by the group in the last three years.
Lenzing further revealed that it will secure a new €300 million credit facility and refinance existing debt by extending maturities until 2030.
One of the world’s leading producers of cellulose-based fibres, Lenzing counts Austrian investment group B&C Group and Brazilian pulp producer Suzano among its principal shareholders.
The restructuring follows a challenging start to 2026. During the first quarter, Lenzing reported revenue of €615.7 million, down 10.8 percent from the corresponding period last year. Earnings before interest, taxes, depreciation and amortisation (EBITDA) declined to €116.3 million from €156.1 million recorded in the first quarter of 2025.
Kasperkovitz, who succeeded former CEO Rohit Aggarwal, is expected to lead the company until May 2029. Aggarwal stepped down earlier this year citing personal reasons.
