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Prachinburi - Lenzing has begun construction of what will become the world’s largest lyocell production plant as it looks to satisfy the demand for the company's speciality fibres in Asia.

Following the approval granted to the project in June 2019 and the successful signing of the Engineering, Procurement, Construction Management (EPCM) contract with Wood PLC in August 2019, construction work was formally commenced on the new manufacturing facility located at Industrial Park 304 in Tatoom, Srimahapoj in Prachinburi province.

The ceremony was attended by Prachinburi Governor Mr. Piboon Hattakitkosol, Ms. Eva Hager, Austrian Ambassador to Thailand, Mr. Duangjai Asawachintachit, Secretary General of the Thailand Board of Investment and more than 100 guests from society and politics.

The new plant, with a capacity of 100,000 tons per year, will be the largest lyocell facility in the world and will help the owner of the Veocel brand meet the strong demand and simultaneously strengthen its market leadership position for specialty fibres, Lenzing said.

The investment volume for a first production line amounts to €400 million while up to three additional production lines can be built and operated on the site.

"The project is of great importance to Lenzing as it is the first step in bringing lyocell production to Asia, home to the largest markets, the most important customers and the most extensive growth potential in specialty fiber production," the company said in a statement.

The new manufacturing facility is scheduled to be completed in the third quarter of 2021, with production of the first fibres already expected for the fourth quarter of the same year.

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