Suzano diversifies its presence in the sector. The Brazilian pulp giant today announced its entry into the capital of Lenzing. Through an operation of 230 million euros, Suzano has acquired 15% of the capital of the company specialized in cellulosic fibers.
Under the terms of the agreement, Suzano will acquire part of its stake from B&C Group, the majority shareholder of the Austrian company today. In the long term, however, both groups plan to form an “association” that will allow them to have the majority participation (52.25%).
The Brazilian giant, in addition, has the right to buy another 15% stake before 2028, which would modify the control of the company. Following the transaction, B&C Group will retain 37.25% of Lenzing.
“The company, which celebrates its centenary this year, has a long history and commitment to sustainability at all stages of the production process, an experience that will now complement Lenzing’s existing business model,” the company reported, which assures that the Austrian is not a direct competitor of Suzano.
Suzano could become a majority shareholder of Lenzing in the long term
The operation, which still needs to be approved by regulatory authorities, foresees that Lenzing’s offices and production facilities will remain in Austria. Globally, the Austrian company has the capacity to produce more than one million tons of fiber per year. “Lenzing is already a leading supplier of premium cellulosic fibers to the textile industry worldwide, and we know there are opportunities to grow with its established technology, product range and technical know-how,” said Suzano CEO. Walter Schalka.
Lenzing closed the 2023 financial year multiplying its losses from the previous year. The company recorded a negative net result of 593 million euros, compared to the 37.2 million euros it lost in 2022. In addition, Lenzing has indicated that it incurred a non-monetary impairment loss of 464.9 million euros (a accounting term that reflects a reduction in the value of a company’s assets).
For its part, The acquisition of Suzano is not the first in the recycled fiber sector. The Brazilian giant is already the majority shareholder of the Finnish company Spinnova, specialized in fiber-to-fiber recycling.
