(Bloomberg) — Lenzing AG will close UK and Austrian plants as part of a new strategy that also increases equity and aims to revive the textile maker from a years-long downturn. Shares tumbled the most in four years.
New chief executive officer Georg Kasperkovitz, in charge since in June, wants as much as €120 million ($136 million) savings by the end of next year, including by closing or selling plants in Grimsby, UK, and Heiligenkreuz, Austria, according to a company statement. He also plans to cut a quarter of Lenzing’s workers, to fewer than 6,000 over the next 18 months, in a shift to more profitable nonwovens fabrics.
The company plans to raise as much as €300 million in new equity, including from core shareholders — its second capital increase in three years. The company will also add as much as €300 million in new debt and extend maturities on existing credit to 2030.
The overhaul is the latest in a series of cost-cutting and refinancing measures at the Austrian company, which has faced headwinds from competition in China and India, and rising costs in Europe.
Shares of Lenzing fell 17% in Vienna on Tuesday, the most since September 2022. They have lost more than 80% of their value since the beginning of 2022.
Shareholders include the Austrian industrial conglomerate B&C Group and Brazilian pulp producer Suzano SA.
In June, Lenzing received its first “buy” rating in almost three years, with Berenberg analyst Sebastian Bray citing improving market pricing for cotton and fibers.
© 2026 Bloomberg L.P.
