Asian boom creates strong demand in Segment Fibers The business development of the first nine months was dominated by continuing strong demand from Asia . Prices for pulp and chemicals reached historic highs which were passed on to the market through price increases. Fiber production is running at full capacity at all sites with stock at lowest levels.
The new fiber plant in Nanjing was inaugurated in September, after six months of trial runs were successfully concluded resulting in excellent fiber quality. The additional capacity of the new plant is urgently required to meet market demands. Plastics also developed well, even with the raw material price for thermoplastics at a new high. The development of Business Unit Engineering continued to be positive with good order bookings.
Segment Paper managed to achieve good sales as well as price increases in individual sectors at high production levels. The current positive development is expected to continue throughout the fourth quarter due to general global economic conditions and strong Asian demand in core business fibers.
Lenzing counters the weakening of the US dollar against the euro by continuous expansion of capacity close to the dollar zone and by the use of hedging instruments. High energy and raw material prices will continue to exert their pressure.
Lenzing will continue its expansion in the fourth quarter as well, provided the general economic situation will remain good. New records are expected for our 2007 sales and earnings which will be significantly higher than those of the previous year.
marketing@alchempro.com
