Lenzing raises EUR 300m: fibre supplier shifts textiles to premium

Austrian cellulose fibre producer Lenzing AG launched on 1 October 2026 a fully underwritten capital increase with subscription rights targeting gross proceeds of about EUR 300m. The subscription price is EUR 8.65 per share; existing shareholders may subscribe for 9 new shares for every 10 held. The subscription period runs from 6 to 20 October 2026, and the rights trade on the Vienna Stock Exchange from 6 to 14 October. The increase is based on the authorisation granted by the extraordinary general meeting on 25 August 2026.

Key facts

• Shares and price: 34,756,362 new shares are being issued. The price represents a 42.50% discount to the theoretical ex-rights price based on the 30 September 2026 closing price.
• Major shareholders: The syndicate of B&C Group and Suzano S.A., Lenzing's indirect majority shareholders (52.25% stake), has committed to exercise all its rights, worth about EUR 157.1m. Oberbank AG (3.87% stake) will also exercise all its rights.
• Strategy: Proceeds support the “Grow Nonwovens, Reset Textiles” strategy: significantly expanding nonwovens and focusing the textiles business on differentiated premium segments and strategic customer partnerships.
• Production network: Fibre production at Heiligenkreuz (Austria) is to end at the close of the first quarter of 2027 and at Grimsby (UK) by the end of 2027, with volumes transferred to other Lenzing sites. The divestment of the Purwakarta (Indonesia) site is ongoing.
• Financing and targets: Lenzing has also secured new financing of up to EUR 300m and extended existing facilities to 2030. A performance programme targets savings of EUR 120m versus 2025; medium-term goals are EUR 150m higher EBITDA, a 20–25% EBITDA margin and net leverage below 2.5x EBITDA.
• Management: Georg Kasperkovitz, CEO of the Lenzing Group, said the transaction provides the financial flexibility to expand nonwovens and reposition the textiles business.

Why it matters

Lenzing owns the TENCEL™ and LENZING™ ECOVERO™ brands and, by its own description, its fibres are used in home textile applications such as bedding, carpets, curtains, towels and upholstery. The focus of its textiles business on premium segments and strategic customer partnerships, the end of fibre production at two European sites and the transfer of volumes to other plants directly affect the 2027 sourcing plans of companies making lyocell- and viscose-based home textiles. Full underwriting by the banks and the commitments of the main shareholders secure the targeted amount.

What members can do

• Bed linen, towel and curtain makers using lyocell or viscose: Ask your yarn and fabric suppliers which Lenzing site will supply the fibre for your 2027 orders and how the Heiligenkreuz and Grimsby transition affects lead times.
• Companies building premium lines with branded fibre: Lenzing's turn to strategic customer partnerships in textiles may open the door to partnership talks for makers that show branded fibre on their product labels; keep certificates and traceability documents ready.
• All members: Follow the subscription period closing on 20 October and the settlement expected on 23 October.

Sources: Lenzing AG announcement (EQS), 1 October 2026 · FashionUnited, 1 October 2026 · Legal Desire, 6 October 2026 · Lenzing, home textile applications