Lenzing Group Raises Prices for Fourth Quarter of 2008 Fiscal Year
August 25, 2008
LENZING, Austria - Due to increased raw material and energy costs, the Lenzing Group will raise its fiber prices for the fourth quarter of the 2008 fiscal year. The Lenzing Group, a world leader in marketing and manufacturing man-made cellulose fibers which are primarily used in textile manufacturing, released a statement saying that the whole range of fibers would see a price increase between 7 and 10 percent depending on the type of fiber.
According to a financial report of the first half of 2008, Lenzing saw a rise in sales of 17.4 percent from EUR 587.5 million to 689.5 million. This figure, however, was offset by the rise in cost of materials and services by 24 percent from EUR 333.5 million to EUR 412.9 million.
According to Lenzing, the fiber market has weakened significantly from the beginning of the second quarter. The decline in fiber demand, in conjunction with rising costs, has led to the necessary price adjustment. In addition to increased costs, the company is currently compensating for the severe lack of demand with a widened product portfolio and an aggressive marketing strategy.
According to a financial report of the first half of 2008, Lenzing saw a rise in sales of 17.4 percent from EUR 587.5 million to 689.5 million. This figure, however, was offset by the rise in cost of materials and services by 24 percent from EUR 333.5 million to EUR 412.9 million.
According to Lenzing, the fiber market has weakened significantly from the beginning of the second quarter. The decline in fiber demand, in conjunction with rising costs, has led to the necessary price adjustment. In addition to increased costs, the company is currently compensating for the severe lack of demand with a widened product portfolio and an aggressive marketing strategy.
