Following the new incentive package explained by the Turkish government for the textile sector, world-wide giant companies started to direct their investments towards Turkey. For instance, Austrian fiber giant Lenzing which manufactures fibers with cellulose obtained out of breech and eucalyptus trees and has a market share in the global market shows an increasing interest in the Turkish market. It announced that it will make most of the planned investment amounting to EUR 1.5 billion until 2012 in Turkey. Although a significant weakening was seen in the global fiber market at the second half of 2011, Lenzing Group achieved a growth of 45 % in terms of sales and profits. After this success in 2011, Lenzing Group wants to continue it in 2012 by reaching about 20 % in the turnover and about 10 % in the production.
Following the innovations and developments in textile market and being the leader of innovation in modal fiber, Lenzing organized a press meeting to provide information about its new products and to declare its targets for 2012. While Susanne Jary, Head of Home Textile in Lenzing A.G., made a presentation about the new technologies in the meeting, Lenzing Head of Global Marketing Communication Christina Kreuzwiese also delivered a speech about both the investments of the firm in the global market and the new technologies. Firm’s Representative in Turkey, the CEO of Filofibra, Livio Danısı made a presentation concerning the Turkish market.
Expressing that their investment opinions were enhanced by the new incentive law, Danisi reminded that most of their investment plans amounting to EUR 1.5 billion until 2014 will be directed to Turkey. Stating that they imported 226 thousand tons of cellulose fiber to the Turkish market as of 2011 and this amount constituted the 40 % of total import of Turkey, Danisi also added that they want to increase this rate to 50 % within 2 years. Expressing that Tencel, Lenzing Modal and Viscose Color are widely supplied to the Turkish market, Danisi added: “When we look at the key markets of Lenzing in the field of fiber closely, the Asian market stands out with a rate of 57 %. It is followed by the European market, including Turkey with 33 %. The American market has a share of 7 % and the others have a share of 3 %”.
Livio Danisi explained that they want to provide product service to the Turkish manufacturers in many fields and continued by saying: “Currently, we are working in such fields as modal fiber, viscose, colored viscose, fireproof fiber etc. Our target is to increase these activities. Also, our technical team working in this region is actively continuing its efforts. We continue providing service in spinning mill, dyehouse and weaving. We want to take a place in active regions of Turkey in terms of textile. For instance, Kahramanmaraş which dominates 60 % of the yarn sector stands out as one of the most important regions that we are interested in. As in the past, we did not remain limited to Istanbul and Bursa. As the sector grows, investment areas also expand.”.
Reminding that they reached to an experienced position in the sector with its efforts lasting for 45 years, Livio Danisi explained that they could envisage the activities and investments for the future more easily. Also stating that Turkey has obtained a important position in the sector of home textile, Danisi added: “If developments continue in this field, Turkey will raise its position and become a world leader. Already being a world leader in terms of denim, Turkey holds its leading position in the field of apparel. Developments in all fields make Turkey an attractive investment region.” Addressing the issue of nonwovens, Danisi emphasized that Turkey has a constantly-evolving structure. Stating that Gaziantep is the leading region in nonwovens production, Danisi said: “We also follow the developments in this area closely”.
“Europe refrains from Turkey”
Another executive delivering a speech in the organisation, Christina Kreuzwiese, Head of Global Marketing Communication of Lenzing Group, stated that Turkey have marked a significant progress in the textile sector since the crisis. Stating that Turkey has an effective position in the European market, Kreuzwiese said: “In Turkey, firms’ trust in textile sector is increasing. We are hopeful for the new incentive package. Therefore, Turkey is the leading country to receive our investments amounting to EUR 1,5 billion until 2014”.
Expressing that Lenzing products are used by such brands as Marks&Spencer, Ikea, Mavi Jeans, H&M, Lacoste, Ungaro, Versace and Mango, Kreuzwiese added: “We are making most of our production in Turkey. This is because of the fact that Turks are hardworking besides of the high quality products and production”. Emphasizing that Turkey advanced significantly in both home textile and apparel industry, Kreuzwiese added that: “You have learned fast, you are clever. Besides, you have made modern production with quality products. Europe is afraid of making investments in Turkey. They are anxious about your fast growth and development. We accept Turkey as a part of Turkey.”.
Lenzing Distinguishes from Edelweiss
In the meeting where significant explanations were made about the new product of Lenzing, Micromodal Edelweiss, the relevant information were shared by Susanne Jary, the Head of Home Textile of Lenzing Group. Emphasizing that this latest product is environment-friendly, Jary also expressed: “MicroModal Edelweiss added a thinner and more luxurious feature to the fiber. While we were planning to introduce MicroModal in the fabric fair in Paris in February 2012, we decided to display it in İstanbul. The fifth Modal innovation created by Lenzing, following MicroModal, ProModal, LenzingModal LOFT and MicroModal AIR, is Edelweiss. In the next process, we are planning to make additional Modal innovations.”
Sales of Lenzing exceeded EUR 2 Billion
Throughout the firm’ s history, consolidated sale figures exceeded the threshold of EUR 2 billion in 2011 for the first time. According to the explanations made by Lenzing Group,the firm broke the records in sales and closed the year. Although a significant weakening was seen in the global fiber market at the second half of 2011, Lenzing managed to achieve double-digit figures in terms of sales and profits. Sales margins of the firm also increased significantly when compared to 2010.
The firm, which exports 91.5 % of its production, has 6.593 employees. While the firm operates in such branches as Fiber, Plastics and Engineering segments, its Fiber segment includes Textile Fibers Business Unit, Nonwoven Fibers Business Unit, Pulp Business Unit and Energy Business Unit. Lenzing Fiber Segment holds the main share in the sales figures of the company with a sales of EUR 1,927 billion. Fiber capacities of the group were as follows in 2011: Viscose capacity 630 thousand tons/year, Tencel capacity 140 thousand tons/year, pulp 629 thousand tons/year.
Consolidated sales of Lenzing for 2011 reached EUR 2.14 Billion from EUR 1.77 Billion with an increase of 21.2 %. Developments in the Biocel Paskov pulp plant that was opened in 2010 in the Czech Republic by the firm, high fiber transfer volumes and advances at all business segments resulted in this high sales figure. EBITDA (earnings before interest, tax, depreciation and amortization) rised up to EUR 480.3 million, with an increase of 45.3% from the comparable figure of EUR 330.6 million in the previous year. However, only earnings before interest and tax (EBIT) climbed by 56.9% to EUR 364.0 million (2010: EUR 231.9 million). The EBITDA and EBIT also broke the respective records by reaching to the highest figures in the history of the firm.
Lenzing participated in the EVTEKS fair held on 16-20 May in Istanbul and introduced its innovative products such as Lezing Modal®, Botanic Towel, Lezing Modal® Edelweiss to the visitors personally.
