AUSTRIA – Suzano, the world’s largest market pulp producer, is set to purchase a 15% stake in Lenzing, a global producer of wood-based packaging materials, for €230 million (US$246.86m).
This strategic move is expected to strengthen both companies’ market positions. Suzano will acquire the stake from B&C, Lenzing’s current majority shareholder.
Suzano and B&C plan to form a “long-term syndicate” that will hold a majority stake in Lenzing, a partnership with significant potential.
Under the agreement, Suzano has the option to acquire an additional 15% stake from B&C by 2028, further solidifying their collaboration.
Lenzing, renowned for producing textiles and non-wovens, also develops fiber-based packaging materials that are naturally durable and biodegradable.
These materials have diverse applications, including tea bags, coffee pods, botanic nets, and reusable bags.
Suzano, headquartered in Brazil and celebrating its centennial year, reported an annual net revenue exceeding €7 billion (US$7.51bn) in 2023.
With extensive experience in pulp production, Suzano believes its expertise will benefit Lenzing.
Walter Schalka, CEO of Suzano, stated, “Lenzing is already a leading global supplier of premium cellulosic fibers for the textile and non-wovens industry.
With its established technology, product range, and technical knowledge, Suzano recognizes opportunities for further growth. Our deep-rooted understanding of pulp production and cost excellence makes Suzano, alongside B&C, an ideal partner for Lenzing as it seeks to strengthen its competitive position and global presence.”
The partners have committed to maintaining Lenzing’s headquarters, production facilities, and key R&D activities in Austria. The partnership also ensures the continued listing of Lenzing shares on the Vienna Stock Exchange.
Lenzing & DVF collaborate to bring responsible fashion into mainstream
In another development, Lenzing Group has announced a global collaboration with iconic fashion brand Diane von Furstenberg (DVF) to bring TENCEL and LENZING ECOVERO branded fibers, made from sustainably managed wood sources, into mainstream fashion.
These resource-efficient fibers will contribute significantly to DVF’s flagship collection of everyday fashion items and selected accessories globally in DVF’s online store and physical locations.
Upcoming collections featuring TENCEL and LENZING ECOVERO fibers will debut in Q3 2024.
This partnership marks a significant milestone in both companies’ commitment to environmental responsibility and raising awareness of conscious fashion choices.
DVF, known for its timeless designs and commitment to empowering women, is expanding its impact by incorporating Lenzing’s fibers into its collections. These fibers’ resource-efficient production enables endless design possibilities.
Jessie Chen, DVF Global Strategic Partner and CEO of Greater China, said, “We are thrilled to partner with Lenzing to bring sustainable fashion to the forefront of the industry.
“By integrating Lenzing’s signature specialty fibers into our designs, we are taking a significant step towards driving meaningful change and inspiring a shift towards conscious fashion choices.”
Lenzing’s commitment to revolutionizing the textile industry with pioneering fiber solutions aligns perfectly with DVF’s vision for a more sustainable fashion industry.
The new flagship collections made of TENCEL and LENZING ECOVERO fibers will launch in Q3 2024.
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