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#8 $1.3-billion plant to expand Lenzing’s renewable fibers business

In Brazil, wood-based fibers producer Lenzing and wood panel maker Duratex have decided to proceed with the world’s largest dissolving pulp plant to meet growing demand for Lenzing’s sustainable textiles.

The plant will be built near Sao Paulo and strengthen Lenzing Group’s backward integration and cost position for its biobased fibers. It is expected to cost $1.3 billion and have an annual capacity of 500,000 tons. The joint venture has also secured FSC-certified plantations covering 44,000 hectares to provide the needed biomass. Start-up is slated for the first half of 2022, at which time the plant will be able to feed 40% of its excess biomass-generated electricity back to the Brazil’s public grid.

Lenzing will own 51% of the joint venture.
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