Sectors Plastics and Technik achieved good results. Sector Paper was finally able to implement at least partial price increases. The results situation, however, is still unsatisfactory.
The positive market environment is expected to continue into the second quarter of 2006. The reduction of capacities in the European textile industry, caused by the heavy import pressure of Asian textiles at the start of 2005, has come to a preliminary end.
Asian demand will remain strong. The market presence in Asia is to be further consolidated by a new sales office in Mumbai/India, to be opened in the first half of 2006. Production at the Lenzing viscose fiber production plant at Nanjing/China will start at the beginning of 2007.
Lenzing will counter the heavy cost pressure exerted by energy and raw material prices by price adaptations and an ambitious cost reduction program. The Group is confident to achieve another good result for 2006 by the implementation of all these measures.
Upper Austria based Lenzing fibres, made of wood, a renewable raw material, are used by the textile industry - for garments, home textiles and technical textiles - as well as by the nonwovens industry.
marketing@alchempro.com
