Gratifying growth rates were achieved in the home textile market, too. Quantity demand in business sector nonwovens was good, price development there, however, was unsatisfactory.
The readiness of the fiber and pulp industry to invest continues to be positive. The result of Lenzing Technik for the first six months was satisfactory. Further cost savings were implemented in business sector paper. They were, however, nullified by rising raw material prices.
The result for the first six months was therefore slightly negative.
Outlook - Good quantity demand for fibers to continue Good quantity demand in the fiber business is expected to continue into the coming months. Demand for textile products, especially in China and Japan, continues to be strong. Prices for energy and raw materials, however, will rise further.
The resulting substantial pressure on margins will have to be compensated by further cost savings and increased efficiency. In addition long-term cost savings measures will be implemented in the next months.
In January 2005 Lenzing Ag builds viscose fiber production in China. Lenzing fibers, 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.
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