Lenzing withdraws from Heiligenkreuz and seeks a new owner for the site

Social plan for the 285 employees in Heiligenkreuz

Overall, around 2,000 jobs are affected by the global restructuring program, which are to be cut by the end of 2027. Currently, 285 people work at the Heiligenkreuz site. According to the company, an existing social plan applies to them. In addition, administrative positions totaling 600 jobs are to be reduced, of which Lenzing says 267 have already been cut and 25 million euros saved.

The move is part of the strategic realignment titled „Grow Nonwovens, Reset Textiles". Lenzing intends to focus more strongly on the nonwovens segment in the future and to restructure its traditional textile business. The planned savings amount to a total of 120 million euros, of which 45 million euros are in the administrative area. The company's headquarters in Lenzing in Upper Austria is also to be modernized as part of the plans.

State Premier Doskozil speaks of a painful turning point

Burgenland's State Premier Hans Peter Doskozil expressed his dismay on Monday. He described the decision as a „schmerzhafte Weichenstellung" that cannot be influenced politically. He pledged that he did not intend to shirk his responsibility. At the same time, he pointed to investments and a positive operating earnings development in the first half of 2026, which had at least temporarily secured the site.

For the affected employees and the region, the state government now has two main points in mind: the application of the existing social plan and a transition phase that is as orderly as possible. Should the search for a new owner prove successful, production in Heiligenkreuz could, according to Doskozil, continue „potentiell auch länger" in order to enable an orderly transition.

Financing: Up to 600 million euros in fresh capital

To finance the program, Lenzing says it has reached a comprehensive refinancing agreement with its key lenders. Fresh capital of up to 600 million euros is to be provided by shareholders and other financing partners. A capital increase with subscription rights of up to 300 million euros is planned, as well as new financing agreements also totaling up to 300 million euros.

The terms of existing liabilities are to be extended until 2030. An extraordinary general meeting to decide on the capital increase is expected on or around August 25, 2026. The program is supported by the main shareholders – the B&C Group and the Brazilian pulp group Suzano – as well as by Oberbank.

According to the information available, the B&C Group holds 37.25 percent of Lenzing shares. Suzano, which is syndicated with B&C, holds 15 percent; Suzano also has a call option until 2028 on a further 15 percent. US investment bank Goldman Sachs holds 10.01 percent, while the free float is 37.74 percent.

In addition to the Heiligenkreuz and Grimsby sites, the Indonesian viscose site PT South Pacific Viscose is also up for sale. In Purwakarta, also in Indonesia, production is being reduced to two lines; the associated job cuts are to be implemented in accordance with local legal requirements.

Shareholder structure and support from the main shareholders

Kasperkovitz rejected the characterization as a pure closure and cost-cutting program. It is „keineswegs um ein Schließungs- und Cost-Cutting-Programm im Zuge der neuen Strategie", he emphasized. The measures reflect the confidence of shareholders and financing partners in the chosen course.

For fiscal year 2026, Lenzing expects impairments of long-term assets – primarily property, plant and equipment – of up to 150 million euros. According to the company, these charges will have a negative impact on group EBIT and group net income in 2026, but not on EBITDA 2026. In addition, provisions of up to 40 million euros are earmarked for restructuring measures in the personnel area, which will burden EBITDA 2026.

Impact on the 2026 financial statements

At the end of 2025, the company had 7,700 full-time equivalents worldwide. This number will fall significantly by the end of 2027. Lenzing processes wood into pulp and produces fibers for fashion, retail, industry, cosmetics and hygiene. The stock is listed on the stock exchange.

The announcement was made late on Monday evening. With the planned exit in Grimsby, the company is withdrawing from England, Kasperkovitz explained. In Heiligenkreuz, the group intends to actively support the transition to a new owner in order to secure the future of the site – and thus the jobs there – beyond the end of Lenzing production.